Sula Vineyards Limited has informed the Exchange about additional investment in wholly owned subsidiary
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Sula Vineyards' Board has approved an additional investment of up to Rs. 15 crores in its wholly owned subsidiary, Artisan Spirits Private Limited (ASPL), by subscribing to a rights issue of around 1.13 crore equity shares at Rs. 13.26 each. ASPL manufactures alcoholic beverages, handles brand distribution and hospitality, and reported a turnover of Rs. 84.92 crores in FY25, up from Rs. 66.86 crores in FY24 and Rs. 45.68 crores in FY23. The funds raised will be used by ASPL to improve its net worth and repay a loan taken from the parent company. The transaction is being done at arm's length based on a valuation report, and Sula's shareholding in ASPL will remain unchanged at 100%. The issue and allotment are expected to be completed by June 30, 2025.
This is an internal restructuring move — Sula is capitalising its subsidiary rather than acquiring anything new. The investment supports ASPL's growth (which has shown strong revenue growth) and cleans up inter-company debt. No change in consolidated financials or ownership structure, so limited direct impact on shareholders, though it signals continued investment in the spirits and hospitality business.