Sula Vineyards IPO gets a flat start in the market, share prices fall Buy, Sell or Hold?
Sula Vineyards started Thursday on a lower note in the stock market.
Sula Vineyards share price opened flat on BSE and NSE as the brewery stock opened at ₹358 per equity share on BSE and ₹361 per equity share on NSE. However, the stock soon witnessed selling pressure and moved to a low of ₹339 on the BSE, down nearly 5 per cent from the upper price band of ₹357 per share. Prior to its listing, Sula Vineyards was trading at a discount of Rs 10-15 to its issue price of Rs 357 in the gray market.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 4.13 times, while the quota reserved for non-institutional investors (NIIs) and retail was subscribed 1.51 times and 1.65 times, respectively.
Ravi Singhal, CEO, GCL Securities advised the allottees. That they hold and accumulate on the big dips while maintaining a stop loss of Rs 319 per share.
He added that due to the outbreak of news about rising Covid cases in China, the stock is expected to remain under pressure as it caters to the hospitality sector as well. Hence, further negative news on Covid could lead to further downside in the scrip. However, he also said that the share price challenge could be a big opportunity for bottom finishers and advised such positional investors to wait for more clarity in the markets.
Incorporated in 2003, Nashik-based Sula Vineyards is India’s largest wine producer and seller. It houses a bouquet of popular brands including Sula, Rasa, Dindori, The Source, Satori, Madera and Diya.
