Minerva Capital Research Solutions

Varmora Granito

ListedListed 29 Sep 2026MainboardNSE: VARMORACheck allotment
Current price₹ 122.3−17.36% since issue
Listing day+4.73%
Issue price
₹ 148
Issue size
₹ 708.02 Cr.
Min. investment
₹ 14,948
Listing price
₹ 155
Subscribed
1.58x
Lot size
101 shares
P/E
60.66
RoNW
7.79%
RoCE
9.89%
PAT margin
3.53%
EBITDA margin
14.18%
RoE
6.80%
EPS
₹ 2.44
NAV
₹ 39.52
Promoter stake
46.55%

About

Varmora Granito Limited was incorporated in 2003. It manufactures and sells ceramic and vitrified tiles, covering glazed vitrified tiles, polished vitrified tiles and ordinary ceramic tiles. Vitrified tiles are denser and harder than ceramic ones and sit at the premium end of the market. The company has deliberately tilted towards that premium end. Glazed vitrified and technical tiles made up about 84% of its tile revenue in FY2026. It has also adopted Integrated Stone Technology through a technology partnership with the Italian firm SACMI, which supports the more innovative and premium products. It runs eight manufacturing facilities in the Morbi cluster of Gujarat, which is India's main tile making centre, and 81.72% of its FY2026 revenue came from tiles it made itself rather than bought in. Its distribution network covers 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas, alongside direct business to business sales to builders, contractors, developers and government bodies. It has 16.22 MW of its own renewable energy capacity from wind and solar, and as on March 2026 it had 1,153 permanent employees.

Timeline

  1. Opens
    22 Sep
    done
  2. Closes
    24 Sep
    done
  3. Allotment
    25 Sep
    done
  4. Refunds
    28 Sep
    done
  5. Demat credit
    28 Sep
    done
  6. Listing
    29 Sep
    done

Grey market premium (GMP)

GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Highest
₹ 15 on 18 Sep 2026
Lowest
₹ 0 on 23 Sep 2026
First quoted
₹ 10 on 17 Sep 2026

Subscription

How many times each investor group bid for its share, as of 29 Sep 2026, 06:30 PM IST.

How much to apply for

The smallest and largest bids for each kind of investor at the upper price band.

Lots and amounts by investor type
Retail (Min)1101₹ 14,948
Retail (Max)131,313₹ 1,94,324
S-HNI (Min)141,414₹ 2,09,272
B-HNI (Min)676,767₹ 10,01,516

Company overview

Financials

Financials by year
Assets1,509.871,589.81,476.16
Total Income1,562.531,492.681,472.58
Profit After Tax55.0930.7744.94
EBITDA221.56198.29150.33
NET Worth796.88722.9678.59
Reserves and Surplus765.7691.72630.2
Total Borrowing357.95505.16412.89

Strengths

  • Profit nearly doubled in FY2026, from Rs 30.77 crore to Rs 55.09 crore.
  • EBITDA has improved every year, from Rs 150.33 crore in FY2024 to Rs 198.29 crore in FY2025 and Rs 221.56 crore in FY2026.
  • The company cut its borrowing sharply, from Rs 505.16 crore in FY2025 to Rs 357.95 crore in FY2026.
  • The product mix is premium. Glazed vitrified and technical tiles accounted for about 84% of tile revenue in FY2026, which earns better than plain ceramic tile.
  • It makes most of what it sells, with 81.72% of FY2026 revenue coming from its own eight plants rather than traded product.
  • The distribution reach is large, with 305 exclusive brand outlets and 2,758 multi-brand outlets in India and overseas, plus direct sales to builders and developers.
  • The technology partnership with SACMI of Italy supports its premium and technical tile range.
  • It has 16.22 MW of its own wind and solar capacity, which helps against the energy cost that dominates tile making.

Risks

  • This is a very expensive issue on earnings, at about 60.66 times on an EPS of only Rs 2.44.
  • Return ratios are weak and do not support that multiple. RoNW was 7.79% and RoCE was 9.89%.
  • Promoter holding is already low at 52% before the issue and falls to 46.55% after it, leaving the promoters below a half share.
  • Sales have been almost flat for three years, moving from Rs 1,472.58 crore in FY2024 to Rs 1,492.68 crore in FY2025 and Rs 1,562.53 crore in FY2026.
  • Profit is volatile, at Rs 44.94 crore in FY2024, Rs 30.77 crore in FY2025 and Rs 55.09 crore in FY2026.
  • The profit margin is thin at 3.53%.
  • All eight plants are in the Morbi cluster of Gujarat, so any problem affecting that cluster, whether gas supply, labour or regulation, affects the entire company.
  • Natural gas is a major input for firing tiles, and gas price movements feed straight into cost with little ability to pass them on quickly.
  • Tile demand follows the construction and real estate cycle, and this is a fresh issue combined with an offer for sale.

What the money is for

Objects of the issue
Repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: The company and wholly-owned subsidiaries namely Covertek Ceramica Pvt.Ltd. and Varmora Sanitarywares Pvt.Ltd. (formerly, Varmora Sanitarywares LLP), and of the subsidiary, Simola Tiles LLP, through investment in such Subsidiaries245
General Corporate Purposes—

Promoters

  • Bhavesh Vallabhdas Varmora
  • Hiren R Varmora
  • Pramodkumar Parsotambhai Patel
Promoter holding52%→46.55%before → after the issue · down 5.45 points

Anchor investors

17 anchors put in ₹ 212.4 Cr., including 9 mutual funds.

Anchor investors
ICICI PRUDENTIAL HOUSING OPPORTUNITIES FUND16,89,2252511.77%
ICICI PRUDENTIAL RETIREMENT FUND-PURE EQUITY PLAN13,51,380209.42%
GOLDMAN SACHS FUNDS-GOLDMAN SACHS INDIA EQUITY PORTFOLIO16,89,2252511.77%
BANDHAN LARGE & MID CAP FUND16,89,2252511.77%
INDIA ACORN FUND LTD.10,67,57015.87.44%
360 ONE EQUITY OPPORTUNITY FUND-SERIES II3,55,9245.272.48%
TURNAROUND OPPORTUNITIES FUND7,11,64610.534.96%
MOTILAL OSWAL LARGE CAP FUND10,67,57015.87.44%
JM SMALL CAP FUND2,02,70731.41%
JM VALUE FUND1,35,13820.94%
JM MIDCAP FUND2,70,27641.88%
JM FLEXICAP FUND4,05,41462.82%
BHARTI AXA LIFE INSURANCE CO.LTD.6,75,690104.71%
UNION SMALL CAP FUND6,75,690104.71%
LC PHAROS MULTI STRATEGY FUND VCC-LC PHAROS MULTI STRATEGY FUND SF13,38,02552.36%
SOCIETE GENERALE-ODI13,51,380209.42%
BNP PARIBAS FINANCIAL MARKETS-ODI6,75,690104.71%

Registrar, lead managers and documents

Listing on
BSE, NSE
Face value
₹ 2 a share
Registrar
KFin Technologies Limited
Lead managers
JM Financial Ltd., SBI Capital Markets Ltd., Goldman Sachs (India) Securities Private Limited
Basis of allotment
Open

IPO dates, prices, grey market premium (GMP), subscription and the company overview: IPO Guru, updated three times a day. GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Our recommendations are research opinions, not investment advice. Read the offer document (RHP) and consult your financial adviser before investing.