Varmora Granito IPO
Varmora Granito shares listed on BSE and NSE on 29 September 2026 after an IPO priced at ₹148, an issue of ₹708.02 crore.
- Minimum investment
- ₹14,9481 lot of 101 shares, at the issue price
- Issue price
- ₹148
- Lot size
- 101 shares
- Issue size
- ₹708.02 croreFresh issue and offer for sale
- Bidding
- 22 Sep to 24 Sep
- Listing
- 29 SepBSE, NSE
Dates
Varmora Granito IPO dates
RHP cover page and Terms of the Offer (p. 463)- 21 SepAnchor bidding
- 22 SepBidding opens
- 24 SepBidding closes, UPI by 5 pm
- 25 SepAllotment
- 28 SepRefunds and demat credit
- 29 SepListing
- Today7 Nov
Read before you apply
Varmora Granito IPO review: read before you apply
Worth checking
- SeriousFuel costs and the Middle East conflict
Power and fuel cost 21.06% of total income in FY26. The RHP says the 2026 Middle East conflict disrupted supply and prices of natural gas and propane, hurting production and revenue (Risk factors 14 and 18).
- SeriousSlow growth and thin returns
Revenue grew 2.65% a year from FY24 to FY26, our calculation. Profit margin was 3.53% and return on equity 6.80% in FY26, and profit fell to ₹30.77 crore in FY25 (RHP, Basis for Offer Price, KPIs).
- Part of the IPO is a sale by Carlyle's affiliate
Katsura Investments sells 2,62,17,634 shares, 12.83% of pre-IPO shares (ours). Its average cost is ₹74.82 a share (RHP cover page).
- All production in one region
All revenue comes from plants in the Morbi cluster in Gujarat, its own and those of 304 contract makers. Contract makers gave 17.60% of FY26 revenue (Risk factors 3 and 11).
- Lower plant use in FY26
Tile capacity use fell from 78.20% in FY25 to 72.49% in FY26, and output fell from 34.25 to 31.75 million square metres (RHP, Our Business, p. 231).
Strengths
- Shift to premium tiles
GVT and technical products rose from 75.37% of tile revenue in FY24 to 84.19% in FY26 (RHP, Basis for Offer Price, KPIs).
- Margins improving
EBITDA margin rose from 10.21% in FY24 to 14.18% in FY26, and gross margin from 35.26% to 37.92% (RHP, Basis for Offer Price, KPIs).
- Debt coming down
Net debt fell from ₹390.01 crore in FY25 to ₹243.43 crore in FY26, and ₹245 crore of IPO money is set aside to repay loans (RHP, KPIs and Objects of the Offer).
- Strong cash flow in FY26
Cash from operations was ₹234.07 crore in FY26, up from ₹63.21 crore in FY25 (RHP, Restated Consolidated Financial Information).
- Wide dealer network
It sells through 305 exclusive outlets and 2,758 multi-brand outlets in 988 cities in India, as of March 2026 (RHP, Our Business).
What Varmora Granito does
Varmora Granito makes and sells tiles, mainly glazed vitrified tiles (GVT), plus polished vitrified and ceramic tiles. It also sells bathware and tile adhesives. It has over 3,500 tile designs and has exported to over 100 countries.
It was incorporated in 2003 and runs eight plants in the Morbi cluster in Gujarat. A joint venture plant in Tezpur, Assam started in July 2026. Its promoters are Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel.
Listing and subscription
Varmora Granito IPO subscription status
NSE IPO details, final figuresListing day
Our calculation: gain vs upper price- Issue price
- ₹148
- Listing price
- ₹155
- Gain at open
- +4.7%
- Day close
- ₹152.19
Subscription
- Total
- 1.58x
- Retail
- 1.00x
- Updated
- 24 Sep 2026, 5:00 pm IST
- QIB50% of offer3.16x
- NII15% of offer0.92x
- Big NII0.92x
- Small NII0.92x
- Retail35% of offer1.00x
- Total1.58x
As of 24 Sep 2026, 5:00 pm IST. Times subscribed is a fact about demand, not a sign of quality. Share of offer is from the RHP offer structure.
Grey market premium. GMP is unofficial. It is not regulated or published by any exchange. If we show it, it carries its source and time, never as a forecast. What GMP means
Price and lots
Varmora Granito IPO price band, lot size and issue size
RHP cover page, The Offer (p. 60) and Offer Structure (p. 467). Fresh issue is ₹3,200.00 million (₹320.00 crore); OFS amount not stated.| Issue price | ₹148 |
| Lot size | 101 shares |
| Issue size | ₹708.02 crore at the upper price |
| Fresh issue | ₹320 crore |
| Offer for sale | ₹388.02 crore by Katsura Investments, an affiliate of funds managed and advised by affiliates of the Carlyle Group |
| Face value | ₹2 per share |
| Issue type | Book built, fresh issue and offer for sale |
Where the money goes
Percentages are our calculation.
Who gets how much of the net offer
What the company will do with the money
RHP, Objects of the Offer (p. 123 to 124)| Object of the issue | ₹ crore |
|---|---|
| Repay or prepay borrowings of the company | 215.00 |
| Repay borrowings of subsidiaries Covertek Ceramica and Varmora Sanitarywares, through investment in them | 30.00 |
| General corporate purposes (amount not stated, up to 25% of gross proceeds) | |
| Offer for sale by Katsura Investments. The company receives none of this money |
Minimum and maximum investment
Our calculation: at ₹148 per share| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min)Minimum application | 1 | 101 | ₹14,948 |
| Retail (max) | 13 | 1,313 | ₹1,94,324 |
| Small NII (min) | 14 | 1,414 | ₹2,09,272 |
| Small NII (max) | 66 | 6,666 | ₹9,86,568 |
| Big NII (min) | 67 | 6,767 | ₹10,01,516 |
Retail bids are capped at ₹2 lakh and small NII bids at ₹10 lakh.
Valuation calculator
Our calculation: inputs from RHP, Restated Consolidated Financial Information and Basis for Offer Price (p. 134 to 136)Set to the issue price, ₹148. Change it to see what you would be paying for.
- Market cap
- ₹3,345 cr
- P/E (FY26, diluted)
- 48.5x
- Price to book
- 4.1x
- Market cap to sales
- 2.2x
- Peer average P/E
- 47.12x
Based on FY26, diluted EPS of ₹3.05, 22.60 crore shares, net worth of ₹806.03 crore (March 2026, equity of owners) and revenue of ₹1,512.46 crore. Shares are after the IPO (our calculation at the issue price of ₹148). The peer average P/E of 47.12x is from the RHP (p. 135), across Kajaria, Somany, Asian Granito and Orient Bell, at prices of 11 Sep 2026.
Financials
Varmora Granito financials
RHP, Restated Consolidated Financial Information and KPIs (p. 63 to 67, 137), ₹ croreRevenue and EBITDA
Revenue grew 2.65% a year from FY24 to FY26 (our calculation).
| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,435.48 | 1,446.03+0.7% | 1,512.46+4.6% |
| EBITDA | 150.33 | 198.29 | 221.56 |
| EBITDA margin | 10.21% | 13.28% | 14.18% |
| Profit after tax | 44.94 | 30.77−31.5% | 55.09+79.0% |
| Diluted EPS (₹) | 2.19 | 1.74 | 3.05 |
| Total equity | 703.36 | 743.20 | 810.22 |
| Cash from operations | 88.29 | 63.21 | 234.07 |
| Net debt | 314.57 | 390.01 | 243.43 |
Consolidated figures. The RHP has no stub period. EBITDA margin is on total income, as the RHP defines it. Profit for owners was ₹62.06 crore in FY26, as subsidiaries with minority holders made losses.
The small figures under revenue and profit are the change from the previous full year, our calculation.
Compared with listed peers
RHP, Basis for Offer Price (p. 136). Peer prices as of 11 Sep 2026.| Company | Revenue (₹ crore) | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|---|
| Varmora Granito | 1,512.46 | 3.05 | 48.52x at issue price (ours) | 7.79% |
| Kajaria Ceramics | 4,830.36 | 30.44 | 40.27x | 15.89% |
| Somany Ceramics | 2,789.84 | 19.76 | 28.55x | 8.79% |
| Asian Granito India | 1,858.06 | 0.70 | 72.00x | 1.23% |
| Orient Bell | 691.45 | 8.43 | 47.67x | 3.78% |
The peer average P/E of 47.12x is our calculation, a simple average of the peers listed.
Key performance indicatorsRevenue growth, Gross margin, Profit margin and more
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue growth | 7.53% | 0.73% | 4.59% |
| Gross margin | 35.26% | 38.95% | 37.92% |
| Profit margin | 3.05% | 2.06% | 3.53% |
| Return on capital employed | 7.95% | 6.32% | 9.89% |
| Return on equity | 6.39% | 4.14% | 6.80% |
| Net working capital days | 82 | 112 | 96 |
| Tile sales volume, million sq m | 36.12 | 38.10 | 38.34 |
| Dealer network | 3,315 | 3,005 | 3,063 |
| Cities with exclusive outlets | 209 | 232 | 249 |
Gross margin and profit margin are on total income, as the RHP defines them.
RHP, Basis for Offer Price, KPIs (p. 137)
Company
About Varmora Granito
Business
RHP, Summary Financial Information (p. 68) and Our Business (p. 207 to 231)Exports were 20.54% of FY26 revenue. Exclusive outlets gave 27.72% of domestic tile sales in FY26, up from 24.90% in FY24. Total tile capacity was 43.80 million square metres a year in FY26.
Revenue by product, FY26
- Exclusive outlets, March 2026
- 305
- Multi-brand outlets, March 2026
- 2,758
- Tile capacity, FY26
- 43.80 million sq m
- Capacity use, FY26
- 72.49%
- Exports, FY26
- 20.54%
Key risks
RHP, Risk Factors- Fuel supply and costPlants run on natural gas and propane, whose supply and price were disrupted in 2026.
- Plant dependence81.72% of FY26 revenue came from products made in its own plants.
- One regionAll production is in the Morbi cluster in Gujarat.
- Product concentrationGVT and technical products are most of revenue.
- Raw materialsPrices and supply of raw and packing materials can swing.
- Exports21.11% of FY26 product sales were outside India, adding currency and sanctions risk.
- CompetitionThe tile market is crowded with large listed and unlisted players.
- Real estate demandSales depend on housing and construction activity.
Read before you apply puts the most important of these beside the strengths.
Promoters and shareholdingPost-IPO percentages are not shown, as the RHP does not split holdings after the fresh issue.
Katsura Investments, a Carlyle affiliate, is the largest holder with 33.29%. Promoters hold 25.38% and other promoter group members 26.62%, together 52.00%. Post-IPO percentages are not shown, as the RHP does not split holdings after the fresh issue.
| Shareholder | Before IPO | Selling (shares) |
|---|---|---|
| Katsura Investments | 33.29% | 2,62,17,634 |
| Bhavesh Vallabhdas Varmora (promoter) | 9.47% | Nil |
| Hiren R Varmora (promoter) | 9.35% | Nil |
| Pramodkumar Parsotambhai Patel (promoter) | 6.56% | Nil |
| Ramanbhai Jivrajbhai Varmora (promoter group) | 6.44% | Nil |
| Vallabhbhai Jivrajbhai Varmora (promoter group) | 5.05% | Nil |
RHP, Capital Structure (p. 110 to 113) and cover page
IndustryIndian domestic tiles market FY2025: ₹53,100 crore
- Indian domestic tiles market FY2025
- ₹53,100 crore
- Growth FY2019 to FY2025
- 6.7% a year (from ₹36,000 crore)
- Expected by FY2030
- ₹76,520 crore (8.4% a year from FY2026)
The report gives these in ₹ billion; ₹ crore is our conversion.
Technopak report 'Industry Report on Tiles, Bathware & Sanitaryware Market in India' in the RHP, commissioned and paid for by the company (p. 174)
LitigationAgainst the company: criminal, tax and regulatory: 21 · By the company: criminal: 56 · Against directors: criminal: 2
| Type | Cases | Amount |
|---|---|---|
| Against the company: criminal, tax and regulatory | 21 | ₹5.53 crore |
| By the company: criminal | 56 | ₹7.29 crore |
| Against directors: criminal | 2 | Nil |
| Against promoters: criminal | 1 | Nil |
| By subsidiaries: criminal | 9 | ₹0.46 crore |
RHP, Risk factor 23 (summary of outstanding litigation, p. 35)
Company detailsLegal name, registered office, CIN and website
| Legal name | Varmora Granito Limited |
| Incorporated | 18 November 2003 |
| Promoters | Bhavesh Vallabhdas Varmora, Hiren R Varmora, Pramodkumar Parsotambhai Patel |
| Plants | Eight, in the Morbi cluster, Gujarat |
| Corporate office | Ahmedabad |
RHP, General Information
Lead managers and registrar
RHP cover pageAllotment
Varmora Granito IPO allotment status
Out from 25 Sep 2026- Open the registrar's pageKFin Technologies Limited is the registrar. Open its allotment page.
- Select Varmora Granito LimitedIt appears once the basis of allotment is final.
- Enter your PAN, application number or DP IDUse the details you applied with.
- Or check on the exchangeBSE's application status page works too.
Documents
Questions
Varmora Granito IPO FAQs
When does the Varmora Granito IPO open and close?
The Varmora Granito IPO opens on Tuesday, 22 September 2026 and closes on Thursday, 24 September 2026. Anchor bidding is on 21 September 2026. UPI mandates must be approved by 5 pm on the closing day.
What is the Varmora Granito IPO price band and lot size?
The price is ₹148 per share. The lot size is 101 shares, so the minimum bid is 101 shares, or ₹14,948 at the upper price.
What is the Varmora Granito IPO size?
The Varmora Granito IPO is of ₹708.02 crore at the upper end of the price band. It is a fresh issue and offer for sale by Katsura Investments, an affiliate of funds managed and advised by affiliates of the Carlyle Group.
What is the Varmora Granito IPO allotment date?
Allotment is on Friday, 25 September 2026. Refunds and demat credit are expected on 28 September 2026.
What is the Varmora Granito IPO listing date?
Varmora Granito shares are due to list on BSE and NSE on Tuesday, 29 September 2026.
Who is the registrar of the Varmora Granito IPO?
KFin Technologies Limited is the registrar. Allotment status can be checked on its website or on BSE using your PAN or application number.
What does Varmora Granito do?
Varmora Granito is a Gujarat-based maker of vitrified and ceramic tiles and bathware, sold under the Varmora brand through over 3,000 dealers in India and abroad.
What does Varmora Granito make?
Tiles, mainly glazed vitrified tiles, plus bathware and adhesives. GVT and technical tiles were 73.98% of FY26 revenue.
How will Varmora Granito use the IPO money?
Of the ₹320 crore fresh issue, ₹245 crore is for repaying loans of the company and two subsidiaries. The rest goes to general corporate purposes and issue costs.
Who is selling shares in the Varmora Granito OFS?
Katsura Investments, an affiliate of Carlyle funds, is selling up to 2,62,17,634 shares. The promoters are not selling.
When were the Varmora Granito IPO dates?
It opened on 22 September 2026 and closed on 24 September 2026. Listing was planned for 29 September 2026 on BSE and NSE.
Is Varmora Granito profitable?
Yes. Profit was ₹44.94 crore in FY24, ₹30.77 crore in FY25 and ₹55.09 crore in FY26 (RHP, Restated Financial Information).
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