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Sula Vineyards rises 2% as HDFC MF, Morgan Stanley, and others acquire a 7.06% stake

Sep 1, 2023

By: BlinkX Research Team

After a significant block deal in which HDFC Mutual Fund, Morgan Stanley, and other major market participants acquired a 7.06% stake in Sula Vineyards, the company's shares increased by about 2% in early trade on September 1.

Major financial market participants, including HDFC Mutual Fund, Morgan Stanley Asia Singapore Pte, Societe Generale, and Ghisallo Master Fund LP, have acquired a combined 7.06% stake in Sula Vineyards, the largest wine producer in India, in a significant development within the beverage industry. On August 31, the acquisition was facilitated through open market transactions.

At an average price of Rs. 484 per share, the acquisition of 59.58 lakh equity shares amounts to a total of Rs. 288.4 crore. A strategic divestment was carried out simultaneously by foreign investor Verlinvest Asia Pte Ltd, who sold 1.06 crore shares, representing a sizeable 12.56% interest in Sula Vineyards. The shares were sold for an average price of Rs 484.13 per share, thereby yielding Rs 513.18 crore.

Following the stake sale, Verlinvest Asia Pte, which owned 18.64% of the company's shares, would hold 5.54% of the equity. Additionally, the remaining share will be locked for 60 days. At its wine-tourism facilities in Nashik and Bengaluru earlier this month, Sula Vineyards reported its biggest three-day sales, individual tastings, and visits from August 12–14.

Source: Media Reports