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Sula Vineyards IPO to open on Dec 12; sets price band at Rs 340-357 per share

Leading wine producer Sula Vineyards on Wednesday said it has fixed a price band of Rs 340-357 a share for its Rs 960-crore initial public offering (IPO), which will open for subscription on December 12.

The three-day initial share sale will conclude on December 14 and the bidding for anchor investors will open on December 9, the company said in a statement.

The public issue will be entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors, and other shareholders.

Those offloading shares through the OFS route are a promoter, founder and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest S.A, and Verlinvest France S.A.

At the upper end of the price band, the IPO is expected to fetch Rs 960.35 crore.

Investors can bid for a minimum of 42 equity shares and in multiples thereafter.

Sula Vineyards has been recognized as the market leader across wine variants, including red, white, and sparkling wines. The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.

Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.

The Nashik-based wine maker’s profit after tax increased multi-fold to Rs 30.51 crore for the six months ended September 30, 2022, from Rs 4.53 crore a year earlier. Its revenue from operations surged by 40.8 percent to Rs 224.07 crore for the six months ended September 30, 2022, from Rs 159.15 crore registered in the same period of the preceding fiscal.

Also read: Uniparts India IPO share allotment: Check status online, grey market premium; listing on 12 Dec

Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.

Reliance Corporate Advisory Services, a wholly-owned subsidiary of Reliance Capital, 2018 sold a 19.05 percent stake in Sula Vineyards for Rs 256 crore.

Eqwires Research Analyst

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Gold Price Today, 5 Dec 2022: Prices rise, dollar weakens due to easing lockdowns in China, dovish Fed stance

Gold Price Today, Gold Price Outlook, Gold Price Forecast: The gold rate was positive on Monday as a result of positive global cues, while the silver rate was up 1.13%. On Multi Commodity Exchange, gold February futures were trading at Rs 54,209 per 10 grams, up Rs 359 or 0.67%. Silver March futures were trading Rs 749 up at Rs 67,198 per kg on MCX. Globally, the yellow metal hit a five-month high on Monday as the dollar softened due to weakening COVID restrictions and easing lockdowns in China, according to Reuters. Spot gold was up 0.5% at $1,807.21 per ounce after climbing to its highest level since July 5 at $1,808.20 earlier in the session. US gold futures gained 0.6% to $1,819.60.

Navneet Damani, Sr. VP, Commodity & Currency, MOFSL
Gold prices edged up and hovered near the key $ 1,800 level, as a softer US dollar made the greenback-priced bullion cheaper for buyers holding other currencies. US employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Fed from slowing the pace of its interest rate hikes starting this month. Chicago Fed President Charles Evans stated at an event that there could be “a slightly higher peak rate of the fund’s rate, even as we likely will step down” the pace of rate hikes from 75 bps. Although, precious metals packs were supported, after hints regarding the slower pace of rate hikes from US central bank governor Powell.
Physical gold demand stalled in India last week on higher prices, while premiums fell in top consumer China as COVID-19 restrictions dulled activity. A broader trend on COMEX could be in the range of $1800-1835 and on the domestic front prices could hover in the range of Rs 53,750-55550.

Rahul Kalantri, VP of Commodities, Mehta Equities
Gold and silver prices were steady in early Monday trades despite stronger-than-expected US jobs data indicating more potential interest rate hikes. While US nonfarm payrolls grew more than expected in November, markets appeared to be sticking to the Federal Reserve’s message that interest rates will rise at a slower pace in the coming months. The dollar index fell nearly to 6-month lows and US 10-year bond yields also slipped to four-month lows.

We expect gold and silver to remain positive this week and gold prices could test $1840 and silver $24.50 per troy ounce levels. We suggest a buy-on-dips strategy in both precious metals. Gold has support at $1792-1780, while resistance at $1824-1840 per troy ounce. Silver has support at $22.90-22.72, while resistance is at $23.65-23.95 per troy ounce. In INR terms, gold has support at Rs 53,580–53,350, while resistance is at Rs 53,970– 54,180. Silver has support at Rs 65,980- 65,350 while resistance is at Rs 67,100–67,650.

Deveya Gaglani, Research Analyst, Axis Securities
Gold prices rallied last week and settled above $1790 for the first time in six months. The correction in the dollar index supported Bullion prices. The dollar index slipped below the $105 level for the first time in six months. As Fed chairman indicated that they will adopt a dovish stance when it comes to hiking the rate as soon as in the month of December itself. Gold price is glittering again and it has regained its safe-haven appeal. Prices are all set to touch a new high next year. A strong resistance zone is seen around the $1820 level. Breakout and sustained buying above the mentioned level may push prices higher toward the $1860 level in the coming weeks. A strong support zone is seen around the $1760 level.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
Gold prices in the recently concluded week extended the winning streak, as it ended on a higher note. Although the dollar rose as a result of hawkish comments made by US Federal Reserve officials who reaffirmed their commitment to fighting inflation, the bullion started the week on a shaky note. The US dollar began to rebound after falling to a level that was nearly two weeks low, and a stronger greenback raised the cost of metals for holders of other currencies.

However, the bullion surged to two-week highs during the week as the US Federal Reserve Chair’s speech reiterated predictions of smaller interest rate hikes. The dollar index is headed for a weekly loss, a weaker greenback makes dollar-priced gold less expensive for overseas buyers. We expect gold to trade higher towards 54140 levels, a break of which could prompt the price to move higher to 54380 levels.

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Oil slips on the strong dollar after Fed rate hike, tight supply lends floor

Oil slipped on Thursday as a U.S. interest rate hike pushed up the dollar and fuelled fears of a global recession, although losses were capped by concerns over tight supply. Brent crude shed 37 cents, or 0.4%, to $95.79 a barrel at 0426 GMT, while U.S. West Texas Intermediate (WTI) crude futures dipped 60 cents, or 0.7%, to $89.40.

Both benchmarks settled up more than $1 on Wednesday, aided by another drop in U.S. oil inventories, even as the Fed boosted interest rates by 75 basis points and Chair Jerome Powell said it was premature to think about pausing rate increases. A strong dollar is dragging down oil, with some market participants also likely booking profits following recent gains, CMC Markets analyst Tina Teng said.

A strong dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies. “With the Fed confirming a higher peak in rates, a darkened global economic outlook could continue to pressure the oil futures markets,” Teng added. Stephen Innes, the managing partner of SPI Asset Management, said that it was surprising oil had proved so resilient after the move by the Federal Reserve, but he noted there were a couple of fundamental factors putting a floor under prices.

The European Union’s embargo on Russian oil for its invasion of Ukraine is set to start on Dec. 5 and will be followed by a halt on oil product imports in February. Also likely to keep supply tight in coming months, producers from the Organization of the Petroleum Exporting Countries (OPEC) may struggle to hit previously set output quotas, ANZ analysts said in a note.

OPEC production fell in October for the first time since June. OPEC and its allies, including Russia, also decided to cut their targeted output by 2 million barrels per day (BPD) from November. The market is also expecting demand from China to pick up with hopes that Beijing will ease off on its zero-COVID policies. Chinese policymakers pledged on Wednesday that growth was still a priority and they would press on with reforms. Any indication of a reopening in China following COVID-19 restrictions could be a “monster pivot”, said Innes.

Eqwires Research Analyst

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