Varmora Granito, a prominent manufacturer of ceramic and vitrified tiles, saw its shares make a positive entry into the stock market on Tuesday, September 29. The company's shares listed on NSE Ltd at Rs 155, marking a 4.73% premium above its initial public offering (IPO) issue price of Rs 148. On BSE Ltd, the stock settled at Rs 152, a 2.70% premium over the issue price.
This strong debut meant investors who received an allotment saw profits ranging from Rs 400 to Rs 700 per lot, exceeding earlier market expectations. Prior to listing, the company's grey market premium (GMP) was modest, suggesting a potentially flat opening. However, earlier in the bidding process, the GMP had indicated a more positive outlook.
IPO Details and Subscription
The IPO for Varmora Granito was open for subscriptions from September 22 to 24, aiming to raise Rs 708 crore. This total comprised a fresh issuance of shares worth Rs 320 crore and an Offer-for-Sale (OFS) of up to 2.62 crore equity shares, valued at Rs 388 crore. Shares were offered within a price band of Rs 140-148 each, with a minimum application lot size of 101 equity shares.
Despite the positive listing, the IPO's overall subscription rate was 1.58 times, according to data from BSE. Qualified Institutional Bidders (QIBs) showed strong interest, with their portion subscribed 3.16 times. However, the quotas for non-institutional investors and retail investors were subscribed 92% and 100% respectively, indicating a mixed demand profile during the bidding phase.
Company Profile
Founded in 2003, Varmora Granito is headquartered in Rajkot and specializes in the manufacturing and marketing of a diverse range of tiles, including glazed vitrified tiles (GVT), polished vitrified tiles (PVT), and ceramic tiles. The company emphasizes premium, technology-driven products, with GVT and technical tiles collectively contributing approximately 84% of its tile revenue in Fiscal 2026.
Brokerage firms had issued varied recommendations for the IPO, with most advising subscribers to consider it for long-term investment. JM Financial Ltd, Goldman Sachs (India) Securities, and SBI Capital Markets served as the book-running lead managers for the Varmora Granito IPO, while Kfin Technologies Ltd acted as the registrar for the issue.