In a surprising turn of events, Sula Vineyards witnessed a sharp decline of over 8% in its shares today, following reports of Verlinvest’s complete divestment of its 8.34% stake in the renowned Nashik-based wine producer. Sula Vineyards, however, swiftly issued a denial, challenging the authenticity of the claims and emphasizing that it was not informed about Verlinvest’s decision.
The Economic Times had reported the block deal, prompting the company to release a statement, saying, “We were not aware of the decision of Verlinvest Asia to sell its entire 8.34% stake in our company. They have not discussed this issue with the company, which we understand is purely their investment decision.”
Despite this clarification, Sula Vineyards’ stock experienced an 8.40% dip, reaching an intraday low of Rs 565.60 on the Bombay Stock Exchange (BSE). The market capitalization of the firm also took a hit, plummeting to Rs 4,789.68 crore. A significant turnover of Rs 114.67 crore was recorded as 19.83 lakh shares changed hands on BSE. Eventually, the stock concluded 7.81% lower at Rs 569.20 crore on BSE.
Sula Vineyards asserted that no disclosure was made to the Exchange under Regulation 30 of the Listing regulations, and it believed there would be no material impact of the article on the company. The company pledged to adhere to compliance requirements under the Listing Regulations and other applicable laws.
In technical terms, the relative strength index (RSI) of the stock stands at 51.9, indicating it is neither in the overbought nor oversold zone. Although the stock is trading higher than the 100-day, 150-day, and 200-day moving averages, it is lower than the 5-day, 10-day, 20-day, and 50-day moving averages.
Despite the stock setback, Sula Vineyards reported a consolidated net profit increase of 9% to Rs 42.98 crore ($5.2 million) compared to Rs 39.28 crore in the previous year. The company disclosed a 4% rise in total revenue to Rs 218 crore, with EBITDA margins expanding to 33.7% from 31% a year ago.
In a positive move, Sula Vineyards declared an interim dividend of Rs 4 per share for the financial year 2024, showcasing its commitment to shareholders.
