Sula Vineyards block deal: One crore shares change hands; stock slips over 7%

Sula Vineyards shares slipped over 7 per cent in trade on Monday (February 19) and touched the intra-day low of Rs 571.35 apiece. The stock slipped after 12  per cent equity or one crore shares changed hands via multiple block deals in the company after the market opened.

At around 10:45 a.m., shares of India's largest wine producer traded 6.62 per cent or Rs 40.9, lower at Rs 576.5 apiece. The market capitalisation of the company at around the same time stood at Rs 4,865.64 crore.

According to Zee Business research, foreign investment firm Verlinvest Asia was likely to sell 70.42 lakh shares (8.34 per cent stake) in the company through the open market for Rs 434.89 crore. 

Information about the entities involved in the block deals is unavailable. 

Sula Vineyards is a winery and vineyard located in the Nashik region of western India, 180 km northeast of Mumbai. It was founded by Rajeev Samant in 1999. Sula has grown to be India’s largest and most awarded wine brand.

How did Sula Vineyards perform in Q3? 

Sula Vineyards reported its Q3 results on February 13, after market hours. The company recorded a consolidated profit after tax (PAT) of Rs 42.98 crore in the third quarter (Q3FY24) against Rs 39.28 crore a year ago. The company's revenue from operations year-on-year (YoY) stood at Rs 217.5 crore in the quarter under review against Rs 209.13 crore.  

Its wine segment, which houses premium brands such as Dindori and Rasa, reported a nearly 4 per cent rise in revenue during the quarter. This is Sula's biggest segment and accounts for 89 per cent of the topline.

Sula Vineyards share price: Past performance 

In a year, shares of Sula Vineyards have risen over 50 per cent, outperforming Nifty 50's rise of 23 per cent.

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