Sula Vineyards debuts on bourses today. Will it make investors happy?

The stock of India's largest wine producer will debut on December 22 but the listing is creating little buzz in the market.

The listing is expected to be on par with or at a discount to the final issue price, judging from the lackluster investor response to the IPO.

Analysts said that trading in the stock has taken place at a 3-4 percent discount to the issue price.

The investor response to the IPO fell short of expectations despite the fact that every category fully subscribed.

The company would not receive any money because it was an Offer For Sale.

The allotted quota was bid for 4.13 times by qualified institutional buyers and 1.5 times by retail investors.

We expect an at-par or discounted listing considering lower-than- expected subscription response from all investor categories. Prashanth Tapse, senior vice president of research at Mehta, said that gray market demand is justified as the issue is entirely OFS and the company will not receive any proceeds for growth.

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The issue is fully priced-in and discounts all near-term growth, so a discount listing can be possible.

Rajnath Yadav, a research analyst at Choice broking, is anticipating a subdued listing for the company. A status quo listing is what Astha Jain expects.

After hitting record highs at the beginning of the month, the market has been quiet. Growing fears of a global recession and high valuations have caused benchmark indices to fall from their record highs.

The public issue price was Rs 340-358 a share.

The leading wine producer and seller did better in FY22 and the first half of FY23 In the financial year ended March FY22, the profit grew to Rs 52.1 crores from Rs 3 crores in the previous year. Earnings Before Interest, Tax, Depreciation and Amortisation doubled to Rs 113 core as revenue increased by 10%.

In the first half of FY23, profit was at Rs 30.5 crores and revenue was at Rs212 crores.