Varmora Granito IPO: The Rs 708.02 crore-initial public offering (IPO) of tile manufacturer Varmora Granito Ltd. opens for subscription on Tuesday, September 22, and will remain open until September 24.
The IPO comprises a fresh issue of 2.16 crore shares aggregating to Rs 320 crore and an offer for sale (OFS) of 2.62 crore shares worth Rs 388.02 crore. The company will use the net proceeds from the fresh issue primarily to repay or prepay outstanding borrowings, with the balance earmarked for general corporate purposes.
Varmora Granito IPO Subscription Status
The Varmora Granito IPO will open for subscription on September 22. The issue will close on September 24, with the category-wise subscription response to be updated as bidding progresses.
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The IPO has reserved not more than 50% of the offer for qualified institutional buyers (QIBs), while not less than 15% has been reserved for non-institutional investors (NIIs) and not less than 35% for retail investors.
Varmora Granito IPO Issue Details
Varmora Granito is looking to raise Rs 708.02 crore through the IPO.
The issue consists of a fresh issue of 2,16,21,621 shares aggregating to Rs 320 crore and an OFS of 2,62,17,634 shares worth Rs 388.02 crore.
The entire fresh issue proceeds will be used towards the repayment or pre-payment, in full or part, of certain outstanding borrowings and accrued interest of the company and its subsidiaries. Around Rs 245 crore has been earmarked for this purpose, with the remaining amount to be used for general corporate purposes.
The OFS is being undertaken by Katsura Investments, which is offering 2,62,17,634 shares worth around Rs 388.02 crore.
Following the IPO, promoter and promoter group holding is expected to decline from 52% to 46.55%, while public shareholding will increase from 48% to 53.45%.
Varmora Granito IPO: Price Band And Lot Size
The price band has been fixed at Rs 140-148 per share, with a lot size of 101 shares.
A retail investor can bid for a minimum of one lot, requiring an investment of Rs 14,948 at the upper end of the price band.
The maximum retail application is 13 lots, or 1,313 shares, requiring Rs 1,94,324.
For small HNI investors, the minimum application is 14 lots, or 1,414 shares, requiring Rs 2,09,272. The minimum big HNI application is 67 lots, or 6,767 shares, requiring Rs 10,01,516.
Varmora Granito IPO Allotment
The Varmora Granito IPO allotment is expected to be finalised on September 25, 2026.
Investors whose bids are not accepted are expected to receive refunds thereafter, while shares allotted to successful bidders will be credited to their demat accounts as per the IPO schedule.
Varmora Granito IPO Listing
Varmora Granito shares are scheduled to list on the NSE and BSE on September 29, 2026, on a tentative basis.
JM Financial Ltd. is the book-running lead manager to the issue, while Kfin Technologies Ltd. is the registrar.
Varmora Granito IPO GMP
In the grey market, Varmora Granito shares were commanding a GMP of Rs 9 per share, according to available grey-market indications.
At the upper price band of Rs 148, a GMP of Rs 9 implies an indicative listing price of around Rs 157, or a premium of approximately 6.08% over the issue price.
The GMP is an unofficial, off-market indicator and can change before listing. It should not be treated as a guarantee of the actual listing price.
Varmora Granito IPO: About The Company
Varmora Granito Ltd., incorporated in 2003, manufactures and markets ceramic and vitrified tiles, including Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT) and ceramic tiles.
The company operates eight manufacturing facilities in the Morbi cluster of Gujarat. In FY26, around 81.72% of its revenue came from in-house manufactured products, while GVT and technical tiles accounted for around 84% of tile revenue.
Varmora has also adopted Integrated Stone Technology (IST) through a technology partnership with Italy-based SACMI, supporting its focus on premium and technology-led tile products.
The company's distribution network includes 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas. It also caters to builders, contractors, developers and government entities through its B2B business.
The company has 16.22 MW of renewable energy capacity from wind and solar sources. As of March 2026, Varmora Granito had 1,153 permanent employees.
Varmora Granito IPO: Financials
Varmora Granito reported a 5% increase in total income to Rs 1,562.53 crore in FY26 from Rs 1,492.68 crore in FY25.
Profit after tax (PAT) rose sharply to Rs 55.09 crore in FY26 from Rs 30.77 crore a year earlier, marking a 79% increase.
EBITDA increased to Rs 221.56 crore in FY26 from Rs 198.29 crore in FY25.
The company also reduced its total borrowings from Rs 505.16 crore in FY25 to Rs 357.95 crore in FY26.
Varmora Granito IPO: What Should Investors Watch?
The IPO's Rs 320 crore fresh issue is primarily aimed at reducing debt, with Rs 245 crore earmarked for repayment or pre-payment of borrowings. This makes the company's post-issue balance sheet and the impact of lower debt on future finance costs important factors to track.
Investors may also track the company's ability to sustain growth in its premium tile portfolio, particularly GVT and technical tiles, which accounted for around 84% of tile revenue in FY26.
Varmora's extensive distribution network, in-house manufacturing base and technology partnerships are key aspects of its business. At the same time, its manufacturing operations are concentrated in the Morbi cluster of Gujarat, making capacity utilisation, operating performance and the broader demand environment for building materials important factors to monitor.
The company's Rs 708.02 crore IPO, therefore, combines fresh capital for debt reduction with a sizeable OFS, while investors will have to track subscription trends, valuation at the upper price band, financial performance and the sustainability of margins before making their own investment decision.
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