Gujarat-based tiles manufacturer Varmora Granito has announced its initial public offering for September 22, 2026, with a price band of ₹140-148 per share. According to reports from The Hindu BusinessLine, the company aims to raise ₹708.02 crore via the IPO at a valuation of ₹3,345 crore at the upper end of the price band. The public issue will remain open until September 24, with shares expected to trade on stock exchanges from September 29. The IPO comprises ₹320 crore in fresh issuance and ₹388.02 crore through offer-for-sale by investor Katsura Investments. The company has 20.35 crore pre-IPO shares outstanding and proposes to list on both BSE and NSE, with NSE designated as the primary exchange. 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%. The issue is a book-built structure with JM Financial Ltd., Goldman Sachs (India) Securities Pvt. Ltd. and SBI Capital Markets Ltd. serving as book-running lead managers, while Kfin Technologies Ltd. acts as the registrar.
The Varmora Granito IPO has received strong institutional backing, raising ₹212.4 crore via anchor book allocation on September 21, a day before the public issue opening. As reported by The Economic Times, the company allotted 1.43 crore equity shares to 17 institutional investors at ₹148 per share, the top end of the IPO price band. Notable participants include Goldman Sachs, ICICI Prudential Mutual Fund, Bandhan Mutual Fund, India Acorn Fund, Turnaround Opportunities Fund, Motilal Oswal Mutual Fund, JM Financial Mutual Fund, Bharti AXA Life Insurance Company, Societe Generale, and BNP Paribas Financial Markets. The company has reduced the size of its fresh issue from the earlier proposed ₹400 crore and also trimmed the OFS component from the 5.24 crore equity shares planned in its draft document filed in August 2025.
In the grey market, Varmora Granito shares are commanding a 6% premium, indicating that the shares are quoted above the upper end of the IPO price band ahead of listing. At the upper price band of ₹148, a GMP of ₹9 implies an indicative listing price of around ₹157, or a premium of approximately 6.08% over the issue price. 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. 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 ₹245 crore has been earmarked for this purpose, with the remaining amount to be used for general corporate purposes. The issue has a lot size of 101 shares, meaning retail investors will need to invest a minimum of ₹14,948 for one lot.
The company has demonstrated robust financial performance with profit after tax rising sharply to ₹55.09 crore in FY26 from ₹30.77 crore in the previous fiscal year, marking a 79% increase. According to Moneycontrol, revenue grew 5% to ₹1,562.53 crore from ₹1,492.68 crore in FY25. Varmora Granito plans to utilize ₹245 crore of net fresh issue proceeds for repaying debt against total outstanding borrowings of ₹357.95 crore as of March 2026, down from ₹505.16 crore in FY25. The company also reduced its total borrowings from ₹505.16 crore in FY25 to ₹357.95 crore in FY26. EBITDA increased to ₹221.56 crore in FY26 from ₹198.29 crore in FY25, while EPS increased to ₹3.05 from ₹1.74. The company plans to use proceeds from the fresh issue to repay borrowings and clear dues of its subsidiaries -- Covertek Ceramica, Varmora Sanitarywares and Simola Tiles.
Varmora Granito operates through eight manufacturing facilities in Gujarat and has a distribution network of 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas. According to Goodreturns, the company has a significant presence in the B2C retail segment, with B2C retail accounting for 66.8% of domestic sales in fiscal 2026, while the B2B business contributed 33.2% of domestic sales. The B2B segment includes partnerships with architects, builders, contractors and government agencies. About 74% of revenue is derived from glazed vitrified tiles and technical products, with one-fifth of revenue coming from international markets. The company has 16.22 MW of renewable energy capacity from wind and solar sources and employed 1,153 permanent employees as of March 2026. The company's EBITDA margin improved to 14.18% in FY2026 from 13.28% in FY2025, while EPS increased to ₹3.05 from ₹1.74. The IPO values Varmora at around ₹3,025 crore at the upper price band.
