Varmora Granito's Rs 708 crore IPO opens for subscription: Check GMP, other key details

Varmora Granito’s IPO opened for subscription today, September 22, giving investors a three-day bidding window. In the grey market, the issue is currently commanding a 6% premium, indicating that the shares are quoted above the upper end of the IPO price band ahead of listing.

The Rs 708-crore IPO is a book-built issue comprising a fresh issue of 2.16 crore shares worth Rs 320 crore and an offer for sale (OFS) of 2.62 crore shares worth Rs 388.02 crore. The issue will remain open until September 24, with allotment expected to be finalised on September 25. The shares are proposed to list on both the NSE and BSE on September 29.

The price band has been fixed at Rs 140–148 per share, with a lot size of 101 shares. At the upper end of the price band, retail investors will need to invest a minimum of Rs 14,948 for one lot.


JM Financial Ltd., Goldman Sachs (India) Securities Pvt. Ltd. and SBI Capital Markets Ltd. are the book-running lead managers, while Kfin Technologies Ltd. is the registrar to the issue.Varmora Granito IPO GMP Today

Varmora Granito IPO Grey Market Premium (GMP) is 6% or Rs 9, with an upper price band of Rs 148.00, the estimated listing price for Varmora Granito IPO is Rs 157.

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IPO Objects of the Issue

Varmora Granito Ltd. plans to use the net proceeds from the IPO primarily towards the repayment or pre-payment, either fully or partly, of outstanding borrowings and accrued interest. The funds will be used to repay debt availed by the company and its wholly owned subsidiaries, Covertek Ceramica Pvt. Ltd. and Varmora Sanitarywares Pvt. Ltd., as well as borrowings of subsidiary Simola Tiles LLP through investments in the subsidiary.

The company has allocated Rs 245 crore towards the issue, including the debt repayment component and general corporate purposes. The proceeds allocated to general corporate purposes will be used for the company’s general business requirements.

Should you subscribe?

According to Sushil Financial Services’ research report, Varmora Granito has demonstrated improving financial performance, with Total Income growing 1.4% in FY2025 and 4.7% in FY2026. PAT declined 31.5% in FY2025 before rebounding 79.0% in FY2026, driving diluted EPS from Rs. 1.74 to Rs. 3.05 and improving RoNW to 7.79%. EBITDA margin also expanded to 14.18% in FY2026 from 13.28% in FY2025, supported by a shift toward premium GVT and technical tiles. However, at the upper price band, the issue is valued at around 48.5x FY2026 diluted earnings, broadly in line with the disclosed listed-peer average of 47.1x (range: 28.6x–72.0x), leaving limited valuation cushion. Given the broadly fair valuation relative to peers, the competitive and cyclical nature of the tile industry, and the company’s 23-year track record, premiumisation strategy and deleveraging balance sheet, the report recommends subscribing to the issue.

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Financial Performance

Varmora Granito Ltd.’s total income increased 5% to Rs 1,563 crore in FY26 from Rs 1,493 crore in FY25. Over the same period, profit after tax (PAT) rose 79% to Rs 55 crore from Rs 31 crore.

About Varmora Granito Ltd.

Varmora Granito Limited, incorporated in 2003, manufactures and markets ceramic and vitrified tiles, including Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT) and ceramic tiles. The company focuses on premium, technology-driven products, with GVT and technical tiles contributing around 84% of its tile revenue in Fiscal 2026. It operates eight manufacturing facilities in Gujarat’s Morbi cluster, with 81.72% of its Fiscal 2026 revenue coming from in-house manufactured products. The company has also adopted Integrated Stone Technology (IST) through a technology partnership with Italy-based SACMI.

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Varmora has a distribution network of 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas, along with B2B sales to builders, contractors, developers and government entities. The company also has a focus on renewable energy, with 16.22 MW of wind and solar capacity. As of March 2026, Varmora had 1,153 permanent employees.

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