IPO Overview
Incorporated in 2003 and headquartered in Morbi, Gujarat — India’s largest ceramic tile manufacturing hub — Varmora Granito Limited is one of India’s top-four tile manufacturers by revenue. The company manufactures and markets a comprehensive portfolio of over 3,500 SKUs, including Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), ceramic tiles, bathware, and adhesives. The company has consistently pioneered technology adoption in the tiles industry, being among the first to introduce digitally printed wall tiles, double-charge tiles, and large-format slabs in India. In 2024, it became the first company in Asia to commercialise Integrated Stone Technology (IST) through a technology partnership with Italy-based SACMI, enabling the production of marble-like vitrified tiles with superior durability and design versatility.
The company is now launching its Mainboard IPO, seeking to raise ₹708.02 crore through a combination of a fresh issue worth ₹320 crore and an Offer for Sale (OFS) of 2.62 crore shares worth ₹388.02 crore by investor Katsura Investments. The IPO is priced in a band of ₹140 to ₹148 per share with a lot size of 101 shares, making the minimum retail investment approximately ₹14,948. The IPO opens on 22 September 2026 and closes on 24 September 2026, with listing expected on both BSE and NSE on 29 September 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 21 September 2026 |
| IPO Open Date | 22 September 2026 |
| IPO Close Date | 24 September 2026 |
| Allotment Date | 25 September 2026 (Expected) |
| Listing Date | 29 September 2026 (Tentative) |
| Price Band | ₹140 – ₹148 per share |
| Face Value | ₹2 per share |
| Lot Size | 101 shares |
| Minimum Investment (Retail) | ₹14,948 (1 lot = 101 shares) |
| Issue Size | ₹708.02 crore |
| Fresh Issue | 2.16 crore shares (₹320 crore) |
| Offer For Sale (OFS) | 2.62 crore shares (₹388.02 crore) |
Note: The OFS component exceeds the fresh issue — meaning more than half the IPO proceeds will go to the selling shareholder (Katsura Investments), not the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
The OFS component of ₹388.02 crore is being offered entirely by Katsura Investments, a financial investor in the company. The promoter group’s shareholding will decline from ~52% pre-IPO to ~46.55% post-IPO, while public shareholding will increase from ~48% to ~53.45%.
Objects of the Issue (Fund Utilization)
The company will only receive proceeds from the fresh issue component of ₹320 crore. These funds will be used as follows:
- Repayment / prepayment of certain borrowings availed by the company and its subsidiaries (Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles) — ₹320 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: JM Financial Ltd., Goldman Sachs (India) Securities Pvt. Ltd., and SBI Capital Markets Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
Promoters & Management
The company is promoted by Mr. Bhavesh Vallabhdas Varmora, Mr. Hiren R. Varmora, and Mr. Pramodkumar Parsotambhai Patel, who bring over two decades of expertise in the ceramic tile manufacturing and distribution space.
As of March 31, 2026, the company had 1,153 permanent employees across its manufacturing and distribution operations.
Company Details
Varmora Granito Limited is one of India’s leading manufacturers and marketers of ceramic and vitrified tiles, operating 8 manufacturing facilities concentrated in Morbi, Gujarat — India’s ceramic tile capital. The company serves both B2C and B2B customer segments through a wide multi-channel distribution network spanning India and over 100 international markets.
Sectors / Channels Served:
- B2C: Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs)
- B2B: Builders, contractors, property developers, and government agencies
- Exports: Over 100 international markets
Key Products:
- Glazed Vitrified Tiles (GVT) — premium segment
- Polished Vitrified Tiles (PVT)
- Ceramic Tiles
- Bathware (sanitaryware)
- Tile Adhesives and related products
Key Capabilities:
- Operates 8 manufacturing facilities in Gujarat’s Morbi ceramic cluster; in-house manufactured products generated 81.72% of FY26 revenue.
- First in Asia to commercialise SACMI’s Integrated Stone Technology (IST) for premium marble-like vitrified tiles
- Distribution supported by a robust pan-India, multi-channel network of 249 exclusive brand outlets and over 3,000 multi-brand outlets across 988 cities, complemented by B2B sales to builders, contractors and government agencies.
- 16.22 MW of renewable energy capacity from wind and solar installations
Subsidiaries:
- Covertek Ceramica
- Varmora Sanitarywares
- Simola Tiles
- 51% stake in Allemby Ceramics Pvt. Ltd. (developing greenfield ceramic tiles facility in Tezpur, Assam)
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
| FY24 | ₹1,472.58 | ₹44.94 | ₹150.33 |
| FY25 | ₹1,492.68 | ₹30.77 | ₹198.29 |
| FY26 | ₹1,562.53 | ₹55.09 | ₹221.56 |
Key Financial Metrics
- Revenue increased by 5% and PAT rose by 79% between FY25 and FY26.
- Post-issue market capitalisation at upper price of ₹148 is approximately ₹3,344.97 crore. Diluted EPS is ₹2.44, resulting in a P/E ratio of 60.66x. Price-to-book value is 3.74x.
- ROE: 6.80% | ROCE: 9.89% | RoNW: 7.79%
- Total borrowings as of March 31, 2026: ₹357.95 crore. Debt-to-equity ratio: 0.44x. Interest coverage ratio: 1.89x. Operating cash flow surged to ₹234.07 crore in FY26.
Company Strengths
- Among India’s top-four tile manufacturers by revenue in FY26, with over 23 years of operating history and a strong brand presence across India.
- Technology leadership — first in Asia to commercialise SACMI’s Integrated Stone Technology; among the first in India to introduce digitally printed wall tiles and large-format slabs.
- EBITDA grew from ₹150.33 crore in FY24 to ₹221.56 crore in FY26 — an increase of ~47% over two years — with EBITDA margin improving from 10.21% to 14.18%, reflecting steadily improving operating efficiency.
- Wide pan-India distribution network of 305 EBOs and 2,758 MBOs, along with exports to 100+ international markets, providing strong revenue diversification.
- 16.22 MW of renewable energy capacity from wind and solar — supporting sustainability and reducing energy costs.
- Expanding into Eastern India via Allemby Ceramics’ greenfield plant in Assam — opening access to an underpenetrated region.
Key Risks & Challenges
- OFS component of ₹388.02 crore — more than half the total issue — is an offer for sale and will not enter the company. All OFS proceeds go to Katsura Investments.
- Post-issue P/E of 60.66x appears demanding, especially given PAT margins of only 3.53% in FY26 — leaving limited room for valuation error if earnings disappoint.
- ROE and ROCE remain modest at 6.80% and 9.89% respectively despite improved profits — not yet at the levels expected from a premium-priced IPO.
- Business is heavily dependent on the real estate and housing construction cycle — any slowdown directly affects tile demand.
- Operates in a highly competitive sector with established listed peers like Kajaria Ceramics, Somany Ceramics, Asian Granito, and Orient Bell.
- The issue appears fully priced based on bumper earnings for 9M FY26, which may not be sustained in subsequent quarters.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
