Varmora Granito IPO
Varmora Granito IPO is a book-building public issue of approximately ₹708.02 crore.
The issue includes a fresh issue of equity shares worth up to ₹320 crore and an offer for sale of shares worth approximately ₹388.02 crore.
The IPO is scheduled to open for subscription on 22 September 2026 and close on 24 September 2026. The company’s shares are proposed to be listed on both NSE and BSE.
Varmora Granito IPO Details
Varmora Granito Ltd. is entering the primary market with an IPO of approximately ₹708.02 crore. The public issue combines a fresh issue with an offer-for-sale component.
The IPO price band has been fixed at ₹140 to ₹148 per share. Investors can apply for a minimum of 101 shares and thereafter in multiples of the specified lot size.
At the upper price band of ₹148, a retail investor needs ₹14,948 for one minimum lot.
From the fresh issue proceeds, the company proposes to use a significant amount towards repayment or prepayment of borrowings, with the remaining funds intended for general corporate purposes.
Varmora Granito IPO Details
| Particulars | Details |
|---|---|
| IPO Open Date | 22 September 2026 |
| IPO Close Date | 24 September 2026 |
| IPO Size | ₹708.02 Crore |
| Price Band | ₹140 to ₹148 per share |
| Face Value | ₹2 per share |
| Lot Size | 101 Shares |
| Issue Type | Book Building |
| Issue Structure | Fresh Issue + Offer for Sale |
| Listing Exchange | NSE and BSE |
| Fresh Issue | 2,16,21,621 Shares |
| Fresh Issue Amount | Up to ₹320 Crore |
| Offer for Sale | 2,62,17,634 Shares |
| Offer for Sale Amount | Approximately ₹388.02 Crore |
| Retail Investment | ₹14,948 at Upper Price Band |
| Expected Allotment | 25 September 2026* |
| Refund / Unblocking | 28 September 2026* |
| Demat Credit | 28 September 2026* |
| Tentative Listing Date | 29 September 2026* |
Varmora Granito IPO Issue Size
| Issue Component | Shares | Approx. Amount |
|---|---|---|
| Total Issue | 4,78,39,255 Shares | ₹708.02 Cr |
| Fresh Issue | 2,16,21,621 Shares | ₹320 Cr |
| Offer for Sale | 2,62,17,634 Shares | ₹388.02 Cr |
Varmora Granito IPO Investor Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Offer |
| Retail Individual Investors | Not less than 35% of the Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Offer |
Varmora Granito IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | Tuesday, 22 September 2026 |
| IPO Closes | Thursday, 24 September 2026 |
| Allotment | Friday, 25 September 2026* |
| Refund / Unblocking | Monday, 28 September 2026* |
| Shares Credited to Demat | Monday, 28 September 2026* |
| Listing | Tuesday, 29 September 2026* |
Varmora Granito IPO Lot Size
The minimum IPO application size is 101 shares. Investors can submit bids in multiples of the prescribed lot size.
| Investor Category | Lots | Shares | Investment at ₹148 |
|---|---|---|---|
| Retail Minimum | 1 | 101 | ₹14,948 |
| Retail Maximum | 13 | 1,313 | ₹1,94,324 |
| S-HNI Minimum | 14 | 1,414 | ₹2,09,272 |
| S-HNI Maximum | 66 | 6,666 | ₹9,86,568 |
| B-HNI Minimum | 67 | 6,767 | ₹10,01,516 |
About Varmora Granito Ltd.
Varmora Granito Ltd., incorporated in 2003, operates in the ceramic and vitrified tile industry. Its product portfolio includes Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), ceramic tiles and other tile products.
The company has manufacturing operations across the Morbi cluster of Gujarat, with eight manufacturing facilities. During FY2026, approximately 81.72% of revenue came from products manufactured in-house.
Varmora has also adopted Integrated Stone Technology (IST) through a technology partnership with Italy-based SACMI, supporting its focus on technology-oriented tile manufacturing.
Its distribution network includes approximately 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas. The company also supplies products to builders, contractors, developers and government customers.
As of March 2026, Varmora Granito had approximately 1,153 permanent employees.
Varmora Granito Business Strengths
- Wide range of ceramic and vitrified tile products.
- Manufacturing presence across the Morbi tile cluster in Gujarat.
- Eight manufacturing facilities supporting in-house production.
- Strong distribution network through exclusive and multi-brand outlets.
- Presence in both domestic and overseas markets.
- Focus on premium and technology-oriented tile products.
- Renewable energy capacity of approximately 16.22 MW from wind and solar sources.
- Fresh issue proceeds are proposed to be used partly for reducing outstanding borrowings.
Varmora Granito IPO Objects of the Issue
The company proposes to deploy the net proceeds from the fresh issue primarily towards reducing debt obligations. The stated purpose also includes general corporate requirements.
| Use of Funds | Amount |
|---|---|
| Repayment / Prepayment of Certain Outstanding Borrowings and Accrued Interest | ₹245 Crore |
| General Corporate Purposes | Balance Amount |
| Total Identified Amount | ₹245 Crore |
The debt-related proceeds are intended to cover borrowings of the company and certain subsidiaries, including Covertek Ceramica Pvt. Ltd., Varmora Sanitarywares Pvt. Ltd. and Simola Tiles LLP, subject to the terms described in the offer documents.
Varmora Granito Financial Performance
Varmora Granito reported an improvement in revenue and profitability in FY2026 compared with FY2025. Total income increased while profit after tax recorded a substantial year-on-year rise.
| Particulars (₹ Crore) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Total Income | 1,562.53 | 1,492.68 | 1,472.58 |
| Profit After Tax | 55.09 | 30.77 | 44.94 |
| EBITDA | 221.56 | 198.29 | 150.33 |
| Net Worth | 796.88 | 722.90 | 678.59 |
| Total Borrowings | 357.95 | 505.16 | 412.89 |
Note: Financial figures are presented in ₹ crore and are based on the restated consolidated financial information supplied for the IPO.
Varmora Granito IPO Key Performance Indicators
| KPI | FY2026 / Relevant Period |
|---|---|
| ROE | 6.80% |
| ROCE | 9.89% |
| RoNW | 7.79% |
| PAT Margin | 3.53% |
| EBITDA Margin | 14.18% |
| NAV | ₹39.52 |
| Price to Book Value | 3.74x |
Varmora Granito IPO Valuation
The IPO price band is set at ₹140 to ₹148 per share. At the upper price of ₹148, the post-issue valuation figures provided for the IPO indicate an EPS of approximately ₹2.44 and a P/E multiple of approximately 60.66x.
| Valuation Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS | ₹2.70 | ₹2.44 |
| P/E | 54.81x | 60.66x |
| Market Capitalisation | ₹3,024.98 Cr | ₹3,344.97 Cr |
| NAV | ₹39.52 | |
| Price to Book Value | 3.74x | |
Varmora Granito Shareholding Structure
| Category | Pre IPO | Post IPO |
|---|---|---|
| Promoter and Promoter Group | 52.00% | 46.55% |
| Public | 48.00% | 53.45% |
| Total | 100% | 100% |
Promoters: Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel.
Varmora Granito IPO Offer for Sale
The offer-for-sale portion of the IPO consists of shares offered by Katsura Investments. The OFS proceeds will go to the selling shareholder rather than being received by Varmora Granito as fresh capital.
| Selling Shareholder | Category | Shares Offered | Amount |
|---|---|---|---|
| Katsura Investments | Corporate | 2,62,17,634 | ₹388.02 Cr |
| Total | 2,62,17,634 | ₹388.02 Cr |
Varmora Granito Debt Position
Varmora Granito reported total borrowings of approximately ₹357.95 crore as of 31 March 2026, compared with ₹505.16 crore in FY2025.
The IPO’s fresh issue includes an allocation of approximately ₹245 crore towards repayment or prepayment of certain borrowings and related accrued interest.
Debt reduction is therefore a significant stated objective of the fresh capital being raised through the IPO.
Varmora Granito IPO Pros and Cons
Potential Positives
- Established presence in the ceramic and vitrified tile industry.
- Eight manufacturing facilities in the Morbi cluster.
- Broad distribution network across India and overseas markets.
- Significant contribution from in-house manufactured products.
- Revenue and EBITDA increased in FY2026 compared with FY2025.
- Profit after tax increased substantially in FY2026.
- Fresh issue proceeds include a sizeable allocation towards repayment or prepayment of borrowings.
- The company has renewable energy capacity from wind and solar sources.
Key Risks
- The ceramic and tile industry is exposed to changes in raw material, energy and transportation costs.
- The business operates in a competitive domestic and international market.
- Tile demand can be influenced by construction, housing and real-estate activity.
- The company continues to have significant borrowings despite reported debt reduction.
- The OFS component does not provide fresh capital to the company.
- The IPO valuation should be considered alongside the company’s earnings, margins, debt and industry conditions.
- Historical financial performance may not necessarily represent future results.
Varmora Granito IPO Registrar & Lead Managers
IPO Registrar: Kfin Technologies Ltd.
Book Running Lead Managers: JM Financial Ltd., Goldman Sachs (India) Securities Pvt. Ltd. and SBI Capital Markets Ltd.
Varmora Granito IPO Important Information
| Particulars | Details |
|---|---|
| Company | Varmora Granito Ltd. |
| IPO Type | Book Building Issue |
| IPO Size | ₹708.02 Crore |
| Price Band | ₹140 – ₹148 |
| Face Value | ₹2 per share |
| Lot Size | 101 Shares |
| Minimum Investment | ₹14,948 |
| Fresh Issue | ₹320 Crore |
| Offer for Sale | ₹388.02 Crore |
| Listing | NSE and BSE |
| Registrar | Kfin Technologies Ltd. |
| Lead Managers | JM Financial, Goldman Sachs India Securities and SBI Capital Markets |
Varmora Granito IPO Quick Summary
Varmora Granito IPO is a book-building public issue of approximately ₹708.02 crore. The IPO is scheduled to open on 22 September 2026 and close on 24 September 2026.
The price band has been fixed at ₹140 to ₹148 per share, while the minimum application size is 101 shares. At the upper price band, one retail lot requires an investment of ₹14,948.
The issue consists of a fresh issue of approximately ₹320 crore and an offer for sale of approximately ₹388.02 crore.
Varmora Granito manufactures ceramic and vitrified tiles and operates eight manufacturing facilities in the Morbi cluster of Gujarat. Its distribution network includes exclusive and multi-brand outlets across India and overseas markets.
For FY2026, the company reported total income of ₹1,562.53 crore, EBITDA of ₹221.56 crore and profit after tax of ₹55.09 crore.
The company proposes to use approximately ₹245 crore from the fresh issue towards repayment or prepayment of certain borrowings and related interest.
Varmora Granito IPO FAQs
Disclaimer
This Varmora Granito IPO information is provided for educational and informational purposes only. IPO investments are subject to market risks, and the actual listing price or post-listing performance may differ from expectations.
Investors should read the company’s RHP, financial statements, risk factors and other official disclosures carefully before making an investment decision. TradingMinds does not provide investment advice and does not guarantee IPO listing gains.
