Trilegal advises on IPO of India’s largest wine producer Sula

Trilegal advises Sula IPO

Trilegal advised on the initial public offering (IPO) of Sula Vineyards, India’s largest wine producer, which debuted on India’s stock market on 22 December 2022.

Trilegal advised the merchant bankers, Kotak Mahindra Capital Company, CLSA India, and IIFL Securities, on the Indian law-related aspects of the IPO.

While the IPO was oversubscribed 2.3 times between December 12 and 14, Sula’s shares slipped on its debut and trade was reportedly flat on the back of weak market sentiment.

As its shares were listed, Sula said it had raised INR2.8 billion from anchor investors. During the IPO, qualified institutional buyers oversubscribed 4.13 times, retail individual investors 1.65 times and non-institutional investors 1.51 times.

Sula currently produces more than 50 labels under popular brand names besides its flagship wine, including RASA, The Source, Satori, Dindori and the like.

The firm has two production facilities in the states of Maharashtra and Karnataka. It also imports and distributes 21 international labels comprising vodka, wine and brandy. Sula Vineyards is India’s market leader across all four price segments as well as red, white and sparkling wines.

“The IPO process was initiated in the latter half of 2021,” said Richa Choudhary, partner at Trilegal who was the lead on the deal.

“Our role involved reviewing the transaction and offering documents, and articles of the company and advising the company and banks on publicity, offer-related matters and certain regulatory issues pertaining to disclosure requirements, foreign exchange controls, corporate governance and marketing restrictions.”

The other members of the Trilegal team who advised on the deal were senior associates Avanti Kale and Maitreya Rajurkar, and associates Sanya Chaudhari, Aayush Khandelwal, Aman Bahl and Urmil Shah.