Shares of Sula Vineyards soared 10% to Rs 358.2 in intraday trade on Monday after the company said its own-label and wine tourism revenue during the October-December quarter (Q3FY23) posted its highest-ever quarterly total.

Shares of the country’s largest wine producer, which accounts for more than 50% of the domestic wine business, traded near a 52-week high of Rs 363.40 on December 22, 2022.

Sula Vineyards was quoted 9.8% higher at Rs 357.45 at 10:25 am, while the S&P BSE Sensex gained 0.26%. The average trading volume over the counter jumped more than 10 times, with 2.8 million shares changing hands on the NSE and BSE.

The company raised Rs 9.6 billion in an initial public offering (IPO) of Rs 357 per share. It will debut on the stock market on December 22, 2022. After debuting, the stock touched a low of Rs 305.35 on December 26, 2022.

Sula Vineyards said that the company’s total private label revenue for the quarter grew strongly by 13% year-on-year to Rs 187.2 crore, driven by solid growth in volume and realisation.

During the nine months of FY23, wine tourism grew by 13% (Rs 23 crore) and 48% (Rs 58.6 crore) year-on-year compared to the same period in FY22.

Management said the company is poised to continue its growth story and leadership in the Indian wine industry, with its new 2.5-million-litre wine cellar coming online in time for the 2023 grape harvest, which looks exceptional in both volume and quality.

Sula Vineyards is India’s largest wine producer and marketer (52% market share in FY22). The company has four owned and two leased production facilities in Maharashtra and Karnataka, producing 56 different labels of wine. Sula has the largest distribution network among Indian wine companies, with approximately 13,000 retail touchpoints in India. The company’s private label contribution has grown steadily from 63.6% in FY20 to 83.9% in FY22. However, any restrictions imposed on travel could have a deterrent effect on the hospitality industry amid fears of an impending Covid wave.