Varmora Granito IPO is a book-built issue worth ₹708.02 crores. The offering comprises a fresh issue of 2.16 crore shares amounting to ₹320.00 crores and an offer for sale of 2.62 crore shares aggregating to ₹388.02 crores.
The IPO will be open for subscription from September 22, 2026, to September 24, 2026. The allotment is expected to be completed on September 25, 2026, with the equity shares scheduled to list on both NSE and BSE on September 29, 2026.
The price band has been fixed at ₹140 to ₹148 per share, with a lot size of 101 shares. At the upper price band, retail investors will need a minimum investment of ₹14,948 for one lot.
JM Financial Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is acting as the registrar. Investors can refer to the Varmora Granito IPO Red Herring Prospectus (RHP) for detailed information about the company and the offer.
Company Overview
Varmora Granito Limited was incorporated in 2003 and is engaged in the manufacturing and marketing of ceramic and vitrified tiles. Its product portfolio includes Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT) and ceramic tiles. In Fiscal 2026, GVT and technical tiles contributed around 84% of the company’s tile revenue, reflecting its emphasis on premium and technology-focused products.
The company has eight manufacturing facilities located in Gujarat’s Morbi cluster. In Fiscal 2026, 81.72% of its revenue came from products manufactured in-house. Varmora has also implemented Integrated Stone Technology (IST) through a technology partnership with Italy-based SACMI to develop advanced tile products.
Its distribution network covers India and international markets through 305 exclusive brand outlets and 2,758 multi-brand outlets. The company also serves B2B customers, including builders, contractors, developers and government entities. Varmora has renewable energy capacity of 16.22 MW across wind and solar sources. As of March 2026, the company employed 1,153 permanent employees.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 22 to 24 Sep, 2026 |
| Allotment | Fri, Sep 25, 2026 |
| Listing Date | Tue, Sep 29, 2026 |
| Face Value | ₹2 per share |
| Price Band | ₹140 to ₹148 per share |
| Lot Size | 101 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh capital cum OFS |
| Total Issue Size | 4,78,39,255 shares (agg. up to ₹708 Cr) |
| Fresh Issue | 2,16,21,621 shares (agg. up to ₹320 Cr) |
| Offer for Sale | 2,62,17,634 shares of ₹2 (agg. up to ₹388 Cr) |
| Shareholding Pre-Issue | 20,43,90,203 shares |
| Shareholding Post-Issue | 22,60,11,824 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- The organised flooring market is estimated to account for 58.0% of the Indian flooring market in Fiscal 2026 and is projected to reach 65.0% by Fiscal 2030, according to the Technopak industry report.
- India’s per capita tile consumption was around 0.8 square metres in Fiscal 2024, compared with higher levels in countries such as Brazil and China, indicating potential headroom for growth in domestic tile consumption.
- Rising household incomes, urbanisation and growth in premium housing are supporting demand for organised and premium flooring products.
- Morbi is a major tile manufacturing cluster in India, with more than 1,200 plants, according to the Technopak industry report. The concentration of manufacturers in the region also contributes to intense competition.
- The adoption of innovative surfaces, engineered stone and newer flooring technologies is creating opportunities for manufacturers expanding beyond conventional ceramic and vitrified tiles.
Business Strengths
- Incorporated in 2003, Varmora has an established presence in India’s organised tile industry, with revenue from operations of ₹15,124.64 million in Fiscal 2026
- The company offers 4,289 tile SKUs across GVT, PVT, ceramic and technical tiles. GVT and technical products accounted for 73.98% of total revenue from operations in Fiscal 2026.
- The company focuses on product innovation and has commercialised Integrated Stone Technology (IST) through its technology partnership with Italy-based SACMI.
- Its distribution network includes 305 exclusive brand outlets and 2,758 multi-brand outlets, supported by a wider dealer and distributor network. B2C sales accounted for 66.8% of domestic sales in Fiscal 2026, while B2B sales contributed the remaining 33.2%.
- The company’s own operations, associates and subsidiaries have a combined tile manufacturing capacity of 70.2 million square metres, with in-house tile capacity utilisation of 82.4% in Fiscal 2026.
Business Risks
- Around 81.72% of revenue from operations in Fiscal 2026 came from in-house manufactured products, while its manufacturing facilities are concentrated in the Morbi cluster, exposing operations to potential regional disruptions.
- A significant portion of the company’s revenue is derived from GVT and technical products, exposing its business to changes in demand, pricing and consumer preferences in these product categories.
- The company is exposed to fluctuations in the prices of key raw materials such as clay, feldspar and silica, as well as natural gas and other energy costs, which may affect production costs and margins.
- Varmora operates in a highly competitive tile market comprising organised players as well as regional and unbranded manufacturers, which may affect pricing, margins and market share.
- The company’s sales are influenced by construction, housing and real estate activity, while its significant B2C presence makes demand sensitive to changes in consumer spending and preferences.
Financial Performance
Varmora Granito Ltd. – Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 15,124.64 | 14,460.29 | 14,354.81 |
| EBITDA | 2,215.56 | 1,982.91 | 1,503.30 |
| EBITDA Margin (%) | 14.18% | 13.28% | 10.21% |
| Profit for the Year | 550.93 | 307.73 | 449.35 |
| Profit Margin (%) | 3.53% | 2.06% | 3.05% |
| Return on Capital Employed (ROCE) (%) | 9.89% | 6.32% | 7.95% |
| Return on Equity (%) | 6.80% | 4.14% | 6.39% |
(Source: RHP)
Key Ratios & Metrics
| KPI | Mar 31, 2026 |
|---|---|
| Return on Equity (ROE) | 6.80% |
| Return on Capital Employed (ROCE) | 9.89% |
| Return on Net Worth (RoNW) | 7.79% |
| PAT Margin | 3.53% |
| EBITDA Margin | 14.18% |
| Net Asset Value (NAV per share) | ₹39.52 |
| Price to Book Value (P/B) | 3.74 |
(Source: RHP)
Objects of the Offer
- Repayment/pre-payment of borrowings: ₹245 crore of the net proceeds will be used to repay or pre-pay, fully or partly, certain outstanding borrowings and accrued interest of Varmora Granito Limited and its wholly owned subsidiaries, Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited.
- General corporate purposes: The remaining net proceeds will be utilised for general corporate purposes, subject to the applicable SEBI ICDR limits. These may include growth initiatives, ordinary business expenses, brand-building, marketing, partnerships, investments in subsidiaries, associates or joint ventures and other permitted requirements.
Conclusion
Varmora Granito operates in India’s organised tile market with a broad product portfolio, established distribution network and in-house manufacturing capabilities. The company also has a presence in bathware and engineered stone and surface solutions, supported by its focus on product innovation and technology.
However, its manufacturing operations are concentrated in the Morbi cluster, while fluctuations in raw material and energy costs, competition and changes in construction activity and consumer preferences may affect its business performance. Investors may consider the company’s financial performance, IPO valuation, use of proceeds and the risks disclosed in the RHP before making an investment decision.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory.Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
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