Sula Vineyards shares slip 7% after company receives excise duty notice of Rs 116 crore

Shares of Sula Vineyards, a leading wine-producing company, slipped over 7 per cent in Wednesday's trading session. The stock came under selling pressure after the company received an excise duty notice of Rs 116 crore from the Maharashtra excise department.

At the time of filing this report, around 11:00 a.m., the stock fell 7.04 per cent to Rs 479.9 apiece on the bourse. The scrip was down for the second consecutive day and has lost over 8 per cent in two days, so far. The market capitalisation of the company stood at Rs 4,049.30 crore.

"The demand notice was received by the company on the ground that under the Maharashtra Manufactured Beer and Wine Rules, 1966, excise duty was recoverable on wine produced or manufactured from grapes produced in Maharashtra by blending wine brought from across the customs frontier or from other states," the exchange filing read.

Further, the company filed a writ petition on August 1, 2023, before the High Court of Bombay, challenging the order.

The wine producer will declare the financial results for the quarter ending June on August 10, 2023.

Sula Vineyards shares were listed on the exchanges on December 22, 2022. The stock had made a debut at Rs 361 against an issue price of Rs 357, registering just 1 per cent in listing gains.

The scrip has gained over 37 per cent since its debut.

Sula Vineyard share price: Historic performance

Sula Vineyard's stock has outperformed the headline index and has gained over 46 per cent in 2023 so far, against Nifty's rise of over seven per cent.

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