Varmora Granito, a prominent Gujarat-based tiles manufacturer, is set to open its Initial Public Offering (IPO) for subscription on September 22. The company plans to raise Rs 708 crore through this public issue, with the price band fixed at Rs 140-148 per equity share, valuing the company at Rs 3,345 crore at the upper end.
IPO Structure and Fund Utilization
The IPO comprises a fresh issuance of equity shares worth Rs 320 crore, a reduction from the initial Rs 400 crore planned. Additionally, investor Katsura Investments will offload 2.62 crore equity shares amounting to Rs 388 crore through an Offer for Sale (OFS). This OFS portion was also adjusted down from 5.24 crore shares, and three promoters previously slated to sell shares have cancelled their participation.
A significant portion of the funds generated from the fresh issue will be allocated towards repaying existing debt, with the remaining capital earmarked for general corporate purposes, strengthening the company's financial position and operational flexibility.
Important Dates for Investors
- Anchor Book Opening: September 21 (for qualified institutional buyers)
- Public Issue Subscription: September 22 - September 24
- Share Allotment Finalization: Expected by September 25
- Listing Date: Shares are anticipated to begin trading on stock exchanges by September 29
Investors can place bids for a minimum of 101 equity shares and in multiples thereof.
Company Profile and Financial Performance
Varmora Granito operates through eight manufacturing facilities and derives a substantial portion of its revenue from its Business-to-Consumer (B2C) retail chain, which contributed 66.8 percent of domestic sales in fiscal year 2026. The Business-to-Business (B2B) segment, involving partnerships with architects, builders, contractors, and government agencies, accounted for 33.2 percent of domestic sales.
The company has demonstrated robust financial growth, reporting a profit of Rs 58.4 crore for the fiscal year ended March 2026, a significant increase from Rs 28.8 crore in the preceding year. Revenue from operations also saw a modest rise of 3.7 percent, reaching Rs 1,361.6 crore from Rs 1,312.8 crore during the same period. Varmora Granito competes with established players in the ceramics industry, including Kajaria Ceramics, Somany Ceramics, Asian Granito India, and Orient Bell.
JM Financial Ltd, Goldman Sachs (India) Securities, and SBI Capital Markets are serving as the merchant bankers for the Varmora Granito IPO, with Kfin Technologies Ltd appointed as the issue's registrar.