This week witnesses significant IPO activity with 19 IPOs opening for subscriptions, marking a substantial increase from the previous week that saw 10 IPOs opening for subscriptions. According to latest reports, the week includes 14 mainboard and 5 SME issues, keeping the primary market busy with diverse investment opportunities across different market segments and price ranges.
Varmora Granito Ltd. opens its IPO today, September 22, with a price band of ₹140-148 per share and will close on September 24. The ₹708.02 crore IPO consists of a fresh issue of shares aggregating up to ₹320 crore and an offer for sale (OFS) of 2.62 crore shares worth ₹388.02 crore by investor Katsura Investments. The company offers various high-quality tiles including polished vitrified, glazed vitrified, and ceramic tiles. Elevate Campuses Ltd. opens on Wednesday, September 23, with a price band of ₹343-362 per share for a ₹2,100 crore fresh issue with no OFS component. ArMee Infotech Ltd. opens on September 23 with a price band of ₹350-375 per share for a ₹300 crore fresh issue of 80 lakh shares, while A-One Steels India opens on September 24-28 with a price band of ₹385-405 per share for a ₹405 crore IPO comprising fresh issue worth ₹355 crore and OFS of ₹50 crore.
Varmora Granito will become a net cash company post-IPO, according to Chief Financial Officer Bhavesh Koshti. The company has ₹240 crore of net debt that will be largely paid off through the IPO proceeds. Of the ₹320 crore fresh issue, ₹245 crore is specifically allocated for debt repayment. With a stronger balance sheet expected after listing, Chairman and Managing Director Bhavesh Varmora said the company is working on a faucet manufacturing acquisition, sized at around ₹100 crore in turnover capacity. "We have identified the targets. We are working on it. It will take another two quarters to come," he said. The company currently outsources faucets for its bathware business while manufacturing sanitaryware in-house.
Glazed vitrified tiles (GVT) have emerged as the key growth driver, with their share of company revenue rising from 57% three years ago to 84% last year. GVT volumes grew at 12% annually over the past three years, with GVT tiles available in larger formats up to 10 feet by 5 feet. The company also produces integrated stone technology (IST) tiles, designed to replicate natural marble, claiming to be the first in Asia, and second globally to bring this technology. 2025-26 (FY26) tile sales stood at 38.34 million square meters, compared with 36.12 million square meters in 2023-24 (FY24), with total manufacturing capacity at 50.6 million square meters putting utilisation at around 72%. The company makes 82% of its GVT requirement in-house.
The subscription details for the first day of the issue will be available post 10 am today. Retail investors can apply for a minimum of 101 shares and in multiples thereafter. At the upper price band, the minimum investment works out to ₹14,948. Before the IPO, the company collected ₹212.41 crore from anchor investors, including Goldman Sachs, ICICI Prudential Mutual Fund, Bandhan Mutual Fund, Turnaround Opportunities Fund, India Acorn Fund, Motilal Oswal Mutual Fund, Bharti AXA Life Insurance Company, Societe Generale, JM Financial Mutual Fund, and BNP Paribas Financial Markets, among others. The company allotted 1.43 crore shares to 17 funds at ₹148 per share, the upper end of the price band. The funds raised will be used for debt repayment of the company and its wholly-owned subsidiaries, Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited, and general corporate purposes. The anchor book opened on September 21, while the public issue will close on September 24, with the basis of allotment expected to be finalised on September 25 and shares likely to list on September 29.
The company plans to use ₹245 crore from the fresh issue to repay or prepay borrowings of the company and its wholly-owned subsidiaries, with the remaining proceeds for general corporate purposes. The company has reduced the size of its fresh issue from the ₹400 crore proposed in its draft red herring prospectus, while the OFS has also been reduced from the 5.24 crore shares proposed earlier. Varmora Granito manufactures and sells ceramic and vitrified tiles, bathware and related products under the Varmora brand, with its product portfolio including glazed vitrified tiles, polished vitrified tiles and ceramic tiles, with the company increasingly focused on premium products. GVT and technical products accounted for 84.19% of tile revenue in FY26. The company competes with listed tile manufacturers including Kajaria Ceramics, Somany Ceramics, Asian Granito India and Orient Bell. JM Financial, Goldman Sachs (India) Securities and SBI Capital Markets are the book-running lead managers, while KFin Technologies is the registrar to the issue.
