Sula Vineyards shares fall 4% on block deal worth Rs 540 crore; check details

Shares of Sula Vineyards Ltd fell over 4% in early trade today as 13.1 percent equity changed hands in a block deal.  According to reports, around 1.1 crore shares were traded at an average price of Rs 490 apiece. The block deal price is at a 3.8% discount to the previous close of Rs 508.70. The transaction was worth Rs 540 crore.  

Shares of Sula Vineyards slipped to Rs 486.10 against the previous close of Rs 508.70 on BSE. A total of 1.95 lakh shares of the firm changed hands amounting to a turnover of Rs 9.57 crore on BSE.  Market cap of the firm fell to Rs 4139 crore.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 59.5, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 50 day, 100 day, 200 day but lower than the 5 day, 10 day, 20 day moving averages.            

The details of the buyers and sellers were not known immediately. However, reports said Verlinvest Asia PTE, a shareholder of the firm, planned to offload up to 12.56 percent stake via a block deal estimated to be worth Rs 539.2 crore. 

The block deal was supposed to be carried out between Rs 473 and Rs 508.7 per share. Verlinvest Asia PTE held 18.6 percent stake in Sula Vineyards at end of June quarter. 

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The company logged a 24.4% rise in Q1, led by a strong demand for its premium wines and rising footfall at its vineyards. 

Consolidated net profit rose to Rs 13.68 crore ($1.65 million) compared with Rs 11 crore a year earlier. Revenue rose 21 percent rise to Rs 117 crore in the June quarter. 

Sula Vineyards Ltd is a producer and seller of wine. It distributes wines under a bouquet of popular brands including RASA, Dindori, The Source, Satori, Madera, and Dia. The company's business is broadly classified under two categories namely the production of wine, the import of wines and spirits, and the distribution of wines and spirits and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms. 

 

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