As the brewery stock opened at 358 per equity share on BSE and 361 per equity share on NSE, the Sula Vineyards share price opened flat on BSE and NSE. The stock immediately came under pressure to sell off, though, and it eventually dipped around 5% below its upper price range of 357 per share to reach an intraday low of 339 per share on the BSE.
Sula Vineyards’ shares had a muted market debut on Thursday, debuting on the NSE with a premium of little over 1% over the Rs 357 issue price.
Stock market analysts claim that the stock opened flat and went into discount due to two main factors: poor mood on Dalal Street and 100% OFS. They predicted that after experiencing further losses in the next sessions, the stock may recover. They recommended that allottees keep their stop losses set at $319 per unit and watch for a trend reversal in secondary markets.
The promoter, investors, and other shareholders are offering 26,900,532 equity shares in the Sula Vineyards IPO. Promoter, founder, and CEO Rajeev Samant is selling shares through the OFS process, together with investors Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest SA, and Verlinvest France SA.
The price range for the Rs 960.35 crore initial share offer was Rs 340 to Rs 357 per share. A variety of well-known brands, including Sula (its flagship brand), RASA, Dindori, The Source, Satori, Madera & Dia, are distributed by the firm. Its four owned and two leased production facilities, which are located in Maharashtra and Karnataka, produce 56 different labels of wines under 13 different brands.