Fratelli Vineyards Rights Issue 2026 Review by Dilip Davda

Fratelli Vineyards Ltd., (Fvl) Is Engaged In The Business Of Production And Manufacture Of Wines And Allied Products. Fratelli Undertakes Activities Relating To Grape Farming, Sourcing, Wine Production, Processing, Ageing, Blending, Bottling And Distribution Of Wines. 

Pursuant To A Share Swap Arrangement Approved By The Shareholders On April 1, 2024, And Completed On April 22, 2024, Fratelli Wines Private Limited Became The Wholly Owned Subsidiary Of The Company. Accordingly, The Company Is Presently The Listed Holding Company, And Fwl Is Its Wholly Owned Subsidiary Through Which The Principal Wine Manufacturing And Related Operating Activities Are Undertaken.

The Fratelli Business Was Established In 2007 And Commenced Wine Production In 2010. The Fratelli Wines Business Was Established Pursuant To An Indo-Italian Collaboration Between The Sekhri Family Of India And The Secci Family Of Italy, With The Development Of Vineyards And A Winery In Maharashtra And Karnataka. The Company's Current Winery Capacity Is Approximately 5.3 Million Litres. Over The Subsequent Years, Fratelli Expanded Its Wine Portfolio, Production Infrastructure And Distribution Network. 

Over The Years, The Company Has Developed Its Portfolio Across Luxury Wine, Super-Premium And Premium Categories, Together With Newer Formats And Products, Including Wine-In-A-Can And Ready-To-Drink (“Rtd”) Products. As Of June 30, 2026, The Company Has Expanded Its International Presence Across 17 Countries. Fratelli Operates An Integrated Vineyard-To-Bottling Business Model, With Activities Spanning Grape Cultivation And Sourcing, Wine Production, Product Development, Branding, Marketing And Distribution.

Following Wine Readiness, Its Wines Are Bottled, Labelled And Packaged At Winery Facilities For Distribution And Sale. Its Winery Infrastructure Includes Dedicated Bottling And Labelling Lines, Supporting The Packaging Of Wine Portfolio Across Different Products, Formats And Prices. As Of The Date Of This Letter Of Offer, It Has Eight (8) Bottling Lines (Including Pet Bottling And Canning Lines). The Bottling And Packaging Operations Form Part Of Its Integrated Grape-To-Bottle Business Model.

Fvl Has A Pan-India Distribution Platform Supported By Sales And Marketing Personnel And State-Specific Regulatory Capabilities. As Of June 30, 2026, Its Distribution Network Covered Approximately 31,000 Widths Of Distribution (Wod). Its Products Are Sold Through Various Channels, Including Retail Outlets, Hotels, Restaurants And Clubs (“Horeca”), Institutional Channels, Duty-Free Channels And Other Applicable Channels. The Company Also Has A Presence In The Canteen Stores Department (“Csd”) Channel, With Several Of Brands Listed Or Being Introduced Through The Channel.

Brand Development And Consumer Engagement Form An Important Part Of Its Business. Fvl Participates In Brand Building, Industry, And Consumer Events And Related Promotional Activities (E.G., Prowine Event, India Art Fair, Shots Fired Event To Promote “Shot Gun”). Such Activities Are Intended To Provide, E. G., Opportunities For Brand Visibility, Trials, Consumer Engagement, Networking, And Strengthening The Market Positioning Of The “Fratelli” Brand. As Of The Date Of This Letter Of Offer, The Company Has Overall 761 Employees.

The Company Is Coming Out With Its Rights Issue (Ri) Of 3318503 Equity Shares Of Rs. 10 Each At A Fixed Price Of Rs. 90 Per Share To Mobilize Rs. 29.87 Cr. The Ri Opens For Subscription On November 06, 2026, And Will Close On November 17, 2026. The Company Is Offering Ri In The Ratio Of 10 For 131 To Its Eligible Stakeholders As Of The Record Date Of October 30 2026. The Company Is Asking For Rs. 54 Per Share On Application For Number Of Shares Applied. The Balance Rs. 36 Is To Be Paid By One Or More Subsequent Calls As Determined By The Company. Post Allotment, Ri Shares Will Be Listed On Bse. The Company Is Spending Rs. 0.36 Cr. For This Ri Process, From The Net Proceeds, Rs. Xx Cr. For Capex Towards Winery Operations, Rs. 11.60 Cr. For Adjustment Towards Conversion Of Unsecured Loans From Promoters Into Equity, Rs. 8.64 Cr. For Repayment Of Outstanding Trade Payables, And Rs. 7.38 Cr. For General Corporate Purposes.  

The Ri Is Solely Lead Managed By The Company Itself, And Alankit Assignments Ltd. Is The Registrar To The Issue. 

Post-Ri, Company’s Current Paid-Up Equity Capital Of Rs. 43.47 Cr. (43472394 Equity Shares) Will Stand Enhanced To Rs. 46.79 Cr. (46790897 Shares). Based On The Ri Pricing, The Company Is Looking For A Market Cap Of Rs. 421.12 Cr. 

The Financial Performance Front, For The Last Two Fiscals, The Company Has Posted Total Revenue / Net Profit, - (Loss), Of Rs. 306.35 Cr. / Rs – (17.06) Cr. (Fy25), Rs. 184.50 Cr. / Rs.  – (24.91) Cr. (Fy26). For Q1 Of Fy27, Ended On June 30, 2o26, It Posted A Loss Of Rs. – (3.67) Cr. On A Total Income Of Rs. 45.37 Cr. The Company Marked De-Growth In Its Top And Bottom Lines For The Reported Periods, That Remains Major Concern. Its Nav Stood At Rs. 31.28 As Of March 31, 2026.

The Company Has Not Paid Any Dividends For The Last Three Years. It Will Adopt A Prudent Dividend Policy, Based On Its Financial Performance And Future Prospects. The Offer Document Is Silent On Its Dividend Policy.

The Scrip Last Closed On Cum-Right Basis At Rs. 120.50 On October 29, 2026, And Opened On An Ex-Right Basis At Rs. 116.50 On October 30, 2026. Since Then, It Has Marked A High/Low Of Rs. 123.00 / Rs. 110.60. The Scrip Last Closed At Rs. 116.90 As Of November 05, 2026. For The Last 52 Weeks’ It Has Posted A High/Low Of Rs. 143.27 / Rs. 60.44. The Counter Is Currently Under Esm: Stage 1.

The Promoters’ Holding Has Been At 0.00%L For The Last Two Here Quarters Ended On September30, 2026. The Counter Is Well Managed And Kept Above The Ri Price By Vested Interest Operators.