Shares of Sula Vineyards Ltd., India's biggest wine manufacturer, plunged over 7% in Monday's trade as equity stake worth ₹676.6 crore in the wine-maker was offloaded through an open market transaction. About 1.16 crore shares, representing 13.76% equity stake, was sold at an average price of ₹579 per share.
Verlinvest Asia was looking to offload its entire stake in Sula Vineyards through large deals in the open market. The institutional investor currently owns an 8.34% stake in the company.
The floor price was at a discount of nearly 5% to Friday's closing price of ₹610 on the NSE. On Monday, the stock was trading 7.20% higher at ₹573.10 apiece on NSE.
Sula Vineyards, which made its stock market debut in December 2022, has risen more than 86% since its listing. The stock is up 16% so far this year and 50% in the last one year.Sula Vineyards Q3 update
Sula Vineyards has reported a more than 9% rise in third-quarter profit, helped by increased demand for its premium brands and wine tourism business. The Mumbai-headquartered company said its consolidated net profit rose to ₹42,98 crore in the quarter.
Its wine segment, which houses premium brands such as Dindori and Rasa, reported a nearly 4% rise in revenue during the quarter. This is Sula's biggest segment and accounts for 89% of the topline.
Its smaller wine tourism segment, logged an 16% rise in revenue as more people visited the company's vineyards, located in the cities of Nashik and Bengaluru, especially over the long Christmas weekend.
Total revenue rose 4% to ₹218 crore, the company said.
Its margins on earning before interest, tax, depreciation and amortization (EBITDA) expanded to 33.7% from 31% a year ago.
Additionally, Sula declared an interim divided of ₹4 per share for the financial year 2024.