Sula Vineyards to Acquire 100% Stake in N D Wines

On April 4, 2024, Sula Vineyards Limited informed the stock exchanges that the company is executing a Share Purchase Agreement (SPA) with the shareholders of N D Wines Private Limited. Sula Vineyards Limited is set to acquire a 100% stake in N D Wines Private Limited.

Details of the Acquisition

On Thursday, Sula Vineyards Limited’s board of directors approved the execution of the Share Purchase Agreement with the existing shareholders of N D Wines Private Limited to purchase the entire shareholding of 32,80,000 equity shares. This would result in Sula Vineyards holding 100% of the equity share capital of N D Wines Private Limited, thus making it a wholly owned subsidiary.

Sula Vineyards stated in the exchange filing that the acquisition will be completed by April 30, 2024. Regarding the nature of consideration, the transaction involves 100% cash. The cost of acquisition for the shares is capped at ₹14 crore, subject to final adjustments. The acquisition aims to leverage operational synergies and explore expansion opportunities.

N D Wines Private Limited is incorporated and domiciled in India. The company was incorporated on February 8, 2000, under the Companies Act 1956. N D Wines Private Limited’s main objective is to manufacture wines. The company reported a turnover of ₹2.30 crore in FY 2023, ₹2.25 crore in FY 2022 and ₹2.09 crore in FY 2021.

On April 5, 2024, the Sula Vineyards share price opened at ₹554.40, touching the day’s high at ₹565.00, as of 10:58 AM on the NSE.

About Sula Vineyards Limited

Sula Vineyards Limited is the largest wine producer and seller in India as of March 31, 2022. The company distributes wines under various popular brands, which include Dindori, RASA, The Source, Madera, Satori, Dia and their flagship brand, Sula.

In March 2024, Sula Vineyards announced that the company is all set to open its first-ever Tasting Room and Bottle Shop outside its wineries in Q1 FY25. The new tasting room is strategically located on the Mumbai – Agra highway close to Nashik Airport and HAL Ozar, thus catering to the fast-growing demand from the regions north and east of Nashik.

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