Sula Vineyards stock drops after 1.1 crore shares change hands in a deal worth Rs 540 crore

However, CNBC-TV18 had reported earlier on Wednesday that Verlinvest Asia PTE, one of the company's early shareholders planned on selling up to 12.56 percent stake through a block deal estimated to be worth Rs 539.2 crore.

Sources told CNBC-TV18 that the block deal was supposed to take place 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. Sula Vineyards has been recognised as the market leader across wine variants, including red, white and sparkling wines.

The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.

Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.

Sula Vineyard block deal | Sources say Verlinvest Asia PTE looks to sell upto 12.56% stake in Sula Vineyard via block deal#Sula #blockdeal pic.twitter.com/lFmXLmkhGT

— CNBC-TV18 (@CNBCTV18Live) August 30, 2023

The Nashik-based company reported a 24.4 percent rise in first quarter profit, helped by strong demand for its premium wines and increased footfall at its vineyards.

The company consolidated net profit stood at Rs 13.68 crore ($1.65 million) compared with Rs 11 crore a year earlier and a 21 percent rise in revenue from operations to Rs 117 crore.

Shares of Sula are trading 2.75 percent lower at Rs 494.70. The stock is up 50 percent so far this year.