Sula Vineyards Limited’s wholly owned subsidiary, Artisan Spirits Private Limited (ASPL), has completed the acquisition of identified assets from Moët Hennessy India Private Limited (MHIP) for an aggregate consideration of ₹20 crore. The transaction involves the purchase of land, building, plant, and machinery forming the estate of Domaine Chandon India, located in Dindori, Nashik. This strategic acquisition is expected to enhance the company's wine tourism business, which continues to be its strongest growth segment, by establishing an additional destination in Dindori.

ASPL executed and registered the Sale Deed with MHIP on June 23, 2026, pursuant to an Asset Purchase Agreement (APA) dated March 25, 2026. Following the execution of the Sale Deed, ASPL has taken possession of the identified assets. The transaction is not a related party transaction, as neither the promoter, promoter group, nor group companies of Sula Vineyards Limited hold any interest in the seller entity.

The financial details of the transaction include an initial consideration of ₹14,85,70,000, which has been paid towards the acquisition of the identified immovable assets. The balance consideration, which includes payment towards acquired inventory and a remaining sum of ₹5 crore, is payable within 12 months from the closing date of June 23, 2026. The total consideration excludes inventory, taxes, and statutory levies.

Transaction Details

The Domaine Chandon India estate is strategically located in Dindori, Nashik, where Sula Vineyards already operates its own winery. The company stated that this proximity would enable efficient operational management and connectivity. The acquisition aligns with the company's strategy to expand its footprint in the wine tourism sector, leveraging the existing infrastructure to drive the next phase of growth in this segment.

Sula Vineyards Limited has clarified to BSE Limited that the delay in disclosing the rejection of its GST appeal was due to the time required for internal assessment and logistical factors. The company faces a confirmed financial liability of Rs 8.12 crore after the Commissioner (Appeals), CGST & Central Excise, Nashik, rejected its appeal against a tax demand. The Order-in-Appeal, dated May 29, 2026, upholds the original demand for the period from FY 2017-18 to FY 2021-22, confirming allegations regarding the tax rate on restaurant services and GST liability on corporate guarantees.

The company explained that while the order was passed on May 29, 2026, the detailed copy was received at its Nashik location on June 12, 2026. It subsequently reached the authorized person at the Registered Office on June 15, 2026, due to the intervening weekend. Sula Vineyards stated that the additional time was necessary to assess the implications of the order and evaluate the appropriate course of action before making the disclosure on June 16, 2026.

Financial Implications

The material financial impact of the order includes a tax demand and a significant penalty. The company disclosed the following breakdown of the confirmed amounts:

The order validates the earlier findings that the company should have paid an 18% GST rate on restaurant services instead of the 5% rate applied. It also upheld the imposition of GST liability on corporate guarantees issued by Sula Vineyards . Consequently, the levy of tax, interest, and penalty as confirmed under the Order-in-Original remains in force.

Company Response

Sula Vineyards stated that it does not agree with the levy confirmed by the appellate authority. The company intends to pursue further legal remedies available under applicable law. Specifically, management indicated that it will file an appeal before the GST Appellate Tribunal (GSTAT) against the current order and expects a favorable outcome at the higher forum. The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.