Sula Vineyards Shares Slide 7% Following Block Deal Worth ₹676.6 Crore

19 Feb 2024 , 10:53 AM

Sula Vineyards, a renowned winemaker, experienced a significant decline of 7% in opening trade on February 19, subsequent to a block deal valued at ₹676.6 Crore taking place in the counter. As of 09:45 am, shares of Sula Vineyards were trading at ₹575 on the NSE.

The block deal involved approximately 1.16 crore shares, representing a 13.76% stake in the winemaker, exchanging hands at a floor price of ₹579 apiece. Reports indicate that Belgian investment holding firm Verlinvest, which held an 8.34% stake in Sula Vineyards, was planning to make a complete exit. The transaction was expected to be executed at a floor price of ₹570 per share, yielding Verlinvest approximately $52 million in total.

Verlinvest’s association with Sula Vineyards dates back to 2010 when it initially acquired a minority stake in the company. The investment firm was among the early investors to demonstrate interest in the winemaker during its IPO debut in December 2022, which comprised entirely of an offer-for-sale.

This recent block deal marks Verlinvest’s continued divestment from Sula Vineyards, following a previous stake reduction in August 2023, where it offloaded a 12.56% holding in a block deal worth ₹513 Crore.

Sula Vineyards, with its presence in the bourses since December 2022, continues to be a significant player in the wine industry. While the block deal has led to a short-term decline in share prices, market sentiments remain subject to evolving dynamics and investor perceptions.