The company has fixed the IPO price band at ₹140-148 per share and is looking to raise ₹708 crore at the upper end of the price band, implying a valuation of around ₹3,345 crore. The issue comprises a fresh issue of ₹320 crore and an offer-for-sale (OFS) of 2.62 crore shares worth around ₹388 crore by investor Katsura Investments.
Investors can bid for a minimum of 101 shares and in multiples of 101 thereafter. At the upper price band, the minimum investment works out to ₹14,948.
SBI Securities highlights premium product mix
SBI Securities, which has not assigned a rating in its note, said Varmora Granito has eight manufacturing facilities in Gujarat’s Morbi region, with annual tile capacity of 43.8 million square metres and capacity utilisation of 72.5% in FY26.
The brokerage said that the company recorded revenue, EBITDA and adjusted profit after tax compound annual growth rates of 2.6%, 23.1% and 11.5%, respectively, between FY24 and FY26. EBITDA margin expanded by around 345 basis points during the period to 11.3% in FY26, aided by a higher contribution from glazed vitrified tiles (GVT), which accounted for 84.2% of tile revenue.
SBI Securities said the company’s plan to use ₹245 crore of the fresh issue proceeds to repay debt could help reduce leverage and interest costs. The company has also acquired a 50% stake in Assam-based Allemby Ceramics for ₹25 crore, adding 6.4 million square metres of annual GVT capacity and expanding its presence in the Northeast.
The brokerage identified the ramp-up of the new capacity and the company’s concentration in the Morbi manufacturing cluster as key factors to monitor.
IPO proceeds to be used for debt repayment
Varmora Granito plans to use ₹245 crore from the fresh issue to repay or prepay borrowings of the company and its wholly owned subsidiaries. The remaining proceeds will be used for general corporate purposes.
The company has reduced the size of its fresh issue from the ₹400 crore proposed in its draft red herring prospectus, while the OFS has also been reduced from the 5.24 crore shares proposed earlier.
Varmora Granito business
Varmora Granito manufactures and sells ceramic and vitrified tiles, bathware and related products under the Varmora brand. Its product portfolio includes glazed vitrified tiles, polished vitrified tiles and ceramic tiles, with the company increasingly focused on premium products. GVT and technical products accounted for 84.19% of tile revenue in FY26.
The company operates eight manufacturing facilities in Gujarat’s Morbi region. Its domestic business is split between B2C retail and B2B customers, with B2C accounting for 66.8% of domestic sales in FY26 and B2B contributing the remaining 33.2%, according to IPO disclosures reported by Moneycontrol.
Varmora competes with listed tile manufacturers including Kajaria Ceramics, Somany Ceramics, Asian Granito India and Orient Bell.
The anchor book opened on September 21, while the public issue will close on September 24. The basis of allotment is expected to be finalised on September 25, with the shares likely to list on September 29.
JM Financial, Goldman Sachs (India) Securities and SBI Capital Markets are the book-running lead managers, while KFin Technologies is the registrar to the issue.