Sula Vineyards: Verlinvest Asia To Exit By Selling 8.34% Stake For Rs 434.8 Crore

Foreign investment firm Verlinvest Asia Pte will exit Sula Vineyards Ltd. by offloading its remaining 8.34% stake for Rs 434.89 crore via open market transaction.

The company will sell 70.42 lakh shares of the winemaker at an offer price range of Rs 570 to Rs 617.5 per share, according to the terms sheet viewed by NDTV Profit.

The sole book-runner for the transaction is Kotak Securities Ltd., and the expected settlement date is Feb. 20.

Verlinvest Asia, which invests in digital and e-commerce, food and beverage, and health and care sectors, held 8.34% stake in Sula Vineyard as of December 2023.

The investment firm held 20.91% stake in Sula Vineyards as of June 2023, and had sold 12.6% stake on Aug. 31 for Rs 513.17 crore.

Last month, brokerage firm CLSA upgraded the stock to a 'buy' and raised the target price by 51% from Rs 571 apiece to Rs 863.

The brokerage also raised its estimates by up to 4% for financial year 2024–26 as the Maharashtra government reinstated the 80% subsidy for five years on wines produced and sold in the state. This will benefit Sula as Maharashtra is its largest market and accounts for almost half of its revenue, it said.

"In our view, this removes a major distraction for investors, who can now focus on the long-term opportunity for wine consumption and wine tourism in India," CLSA said.

Shares of Sula Vineyards closed 3.44% higher at Rs 617.4 apiece on the BSE, as compared with a 0.52% rise in the benchmark Sensex.