Earlier this week, India’s biggest winemaker, Sula, saw its share price reach historic high. The winemaker controls more than half of the market share of India's domestic wine industry. 

When it went for an IPO at the end of  2022, it was successfully subscribed by almost two and a half times.

So you might think the jump in the share price makes sense. Afterall, Sula dominates the wine market in India. But you see, India is not a wine drinking country in general. The share of wine in the country's total alcohol consumption is minuscule.

Turns out, the global brokerage CLSA saying Sula could rise 50% in the next year sent its shares soaring. But this was not because Sula Indians suddenly have become wine drinkers or because Sula has entered the new market.

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