Varmora Granito
Varmora Granito is a leading manufacturer of ceramic and vitrified tiles, offering a diverse range of products including glazed and polished vitrified tiles. The company operates within the building materials sector, utilizing both B2C and B2B business models to distribute its products across India.
Price Band
₹140 - ₹148
Lot Size
101 Shares
Issue Size
₹708.02 Cr
Fresh Issue
₹320.00 Cr
OFS
₹388.02 Cr
Registrar
AI Sentiment Score
Listing Price
₹155.00
vs Issue: ₹148 (+4.73%)
📅 IPO Timeline
✓
Open
Sep 22, 2026
✓
Close
Sep 24, 2026
✓
Allotment
Sep 25, 2026
✓
Refund
Sep 28, 2026
✓
Demat
Sep 28, 2026
✓
Listing
Sep 29, 2026
📈 Grey Market Premium (GMP) Trendline
Daily consensus GMP movement (₹) recorded across market sources
✨ AI Analysis & Prediction
🔒 Final Reconciled Estimate
Locked post-listing with actual debut performance
Varmora Granito displays an established operational footprint with expanding revenue streams (4.2% CAGR) and a defensible value proposition.
💪 Strengths
- Demonstrated operational revenue trajectory with resilient top-line growth (4.2% CAGR).
- Established customer relationships and market position across target industry sectors.
- Sound operational capital returns with Return on Capital Employed (ROCE) at 9.46%.
⚠️ Weaknesses
- Exposure to input cost fluctuations and broader macroeconomic supply chain cycles.
- Working capital requirements to support continuous capacity expansion.
- Competitive landscape from both established incumbents and specialized regional players.
🚀 Opportunities
- Industry tailwinds from rising domestic capex and infrastructure spending.
- Operating leverage potential allowing margin expansion as manufacturing utilization rises.
- Geographic diversification and entry into higher-margin specialized product lines.
🛡️ Threats
- Sectoral regulatory shifts and evolving statutory compliance requirements.
- Aggressive pricing actions by domestic competitors impacting gross margins.
- Broader market equity volatility and liquidity fluctuations.
🎯 Objectives of the IPO
| Requirement / Purpose | Amount (₹ Cr) |
|---|---|
| Repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: The company and wholly-owned subsidiaries namely Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (formerly, Varmora Sanitarywares LLP), and of the subsidiary, Simola Tiles LLP, through investment in such Subsidiaries; and | ₹245.00 |
| General corporate purposes | ₹463.02 |
📊 Financial Overview & Growth Trajectory
Multi-year operational scale & net profitability trajectory
| Metric | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue (₹ Cr) | Rs 1,335.00 Cr | Rs 1,435.00 Cr | Rs 1,446.00 Cr | Rs 1,512.00 Cr |
| Net Profit / PAT (₹ Cr) | Rs 55.00 Cr | Rs 45.00 Cr | Rs 31.00 Cr | Rs 55.00 Cr |
| EBITDA / Op. Profit (₹ Cr) | Rs 116.00 Cr | Rs 113.00 Cr | Rs 153.00 Cr | Rs 171.00 Cr |
| Borrowings (₹ Cr) | Rs 275.00 Cr | Rs 428.00 Cr | Rs 521.00 Cr | Rs 377.00 Cr |
| Total Assets (₹ Cr) | Rs 1,256.00 Cr | Rs 1,467.00 Cr | Rs 1,585.00 Cr | Rs 1,506.00 Cr |
| ROE % | 0.00% | 0.00% | 0.00% | 0.00% |
| ROCE % | 9.46% | 9.46% | 9.46% | 9.46% |
| Debt / Equity | 0.00 | 0.00 | 0.00 | 0.00 |
Company P/E
48.5x
Industry P/E
55.8x
Debt/Equity
0.47
⚖️ Valuation Benchmark Range
🟢 Attractively Priced vs Industry Peers
Industry 55.8x
IPO 48.5x
0x (Deep Value)
75x (High Multiple)
📋 Live Subscription Status
QIB
3.10x
NII
0.94x
Retail
1.02x
Total
1.60x
🎯 Retail Allotment Probability
98% Odds
1 in 1.0 chance (~98% probability per PAN)
SEBI Rule: Under SEBI lottery allotment rules, applying for multiple lots under Retail does NOT increase your lottery odds. All valid retail applicants have identical 1-lot odds per PAN.
Updated: Sep 29, 2026 5:03 PM
💼 Issue Structure & Reservation Quota
Capital Structure
₹708.0 Cr
Issue Size
Fresh (45.2%)
OFS (54.8%)
Reservation Quota
100%
Allocation
QIB (50%)
NII (15%)
Retail (35%)
QIB
50.00%
Retail
35.00%
NII
15.00%
📈 Shareholding & Anchor Lock-In
🔗 Important Links & Lead Managers
- Check Allotment StatusCheck Now →
- Registrar WebsiteVisit →
- Download DRHP ProspectusDownload PDF 📥
- Download RHP ProspectusDownload PDF 📥
Lead Managers / Merchant Bankers
This issue is managed by Hem Securities Ltd., and Share India Capital Services Pvt. Ltd.
Disclaimer: The information provided on this page is for educational and informational purposes only and does not constitute financial advice. IPO investments are subject to market risks. AI-generated analysis is based on publicly available data and may not be accurate. Grey Market Premium (GMP) is unofficial and highly speculative. Always consult a qualified financial advisor and read the DRHP/RHP carefully before making investment decisions.
Founded in 2003, Varmora Granito has evolved into a prominent player in the Indian ceramic and vitrified tiles industry. Over more than two decades, the company has scaled its operations to include a vast product portfolio of over 3,500 distinct products, catering to various aesthetic and functional needs in construction and interior design.
The company's business model is strategically split between B2C and B2B channels. In the B2C segment, it leverages a robust network of 286 exclusive brand outlets (EBOs) and over 2,000 multi-brand outlets (MBOs) to reach end consumers. Simultaneously, its B2B arm focuses on direct partnerships with builders, contractors, developers, and government procurement agencies.
Operationally, Varmora Granito maintains a significant footprint in the Morbi industrial cluster of Gujarat, where it operates 9 manufacturing facilities. This concentration allows the company to optimize production and logistics within India's ceramic hub. The company's reach is extensive, with a presence in 949 cities across 27 states and union territories.
The promoters of the firm, Bhavesh Vallabhdas Varmora, Hiren R Varmora, and Pramodkumar Parsotambhai Patel, have steered the company toward a diversified product range including Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), and standard ceramic tiles, positioning the brand as a versatile choice in the tiling market.
Varmora Granito is launching a Mainboard IPO to raise approximately ₹708.02 crore. The issue is structured as a combination of a fresh issue of ₹320 crore and an Offer for Sale (OFS) of approximately 2,62,17,634 equity shares. The price band is set between ₹140 and ₹148 per share, with a minimum retail lot size of 101 shares costing ₹14,948. The IPO is scheduled to open on September 22, 2026, and close on September 24, 2026, with listing on the BSE and NSE on September 29, 2026.
The proceeds from the fresh issue are primarily earmarked for the repayment or pre-payment of outstanding borrowings and accrued interest for the company and its wholly-owned subsidiaries, including Covertek Ceramica Private Limited, Varmora Sanitarywares Private Limited, and Simola Tiles LLP, totaling ₹245 crore.
Financial performance shows a steady upward trend in revenue, growing from ₹1,472.58 crore in FY24 to ₹1,562.53 crore in FY26. Profitability has been more volatile, with PAT dipping to ₹30.77 crore in FY25 before rebounding strongly to ₹55.09 crore in FY26. The company reports a Basic EPS of ₹3.08 for FY26.
From a valuation perspective, the company's ROE (6.80%) and ROCE (9.89%) are relatively modest compared to industry leaders like Kajaria Ceramics. The high proportion of OFS (roughly 54.8% of the issue size) suggests that a significant portion of the proceeds is going to selling shareholders rather than into company growth, which may be viewed cautiously by investors.
Key strengths include a massive distribution network and a diverse product portfolio. However, risks include the cyclical nature of the real estate sector and the pressure of high competition in the Morbi cluster. Investors should weigh the strong revenue scale against the modest return ratios and current institutional demand levels.