Sula vineyards – pioneers in indian wines

Thanks, @basumallick for the detailed post on the company. Overall seems like a good business with more than 50% market share in the wine industry and operating margins of 20-30%. Given the high market share, they are largely dependent upon the growth of the industry for Sula Vineyard’s revenues to grow. I believe the wine industry will grow faster than the overall industry in India with the increasing women representation in the workforce and urbanization and premiumization of consumers. Some of the concerns I see for the business are:

1. Low promoter stake at 27.3%
2. Promoter have pledged ~22% of their shareholding
3. IPO was entirely OFS, with the promoters selling a substantial stake
4. The mandatory 6-month lock-in period is still not over and existing promoters can sell more stake.

Regards
Shobhit Jaju