- Price band fixed at ₹140–148 per share; subscription opens September 22 and closes September 24
- Proposed ₹320-crore fresh issue and 2.62-crore-share offer for sale by Katsura Investments take the total IPO to about ₹708 crore
- Retail applicants can bid for a minimum of 101 shares, translating to ₹14,948 at the upper price band
- Fresh-issue proceeds are earmarked primarily for debt repayment, including borrowings of three subsidiaries
- FY26 net profit nearly doubled to ₹58.4 crore, while operating revenue rose 3.7% to ₹1,361.6 crore
- The Rajkot-based tile and bathware maker is targeting a BSE-NSE listing, with September 29 indicated as the listing date
R MANICKAVASAGAM
AHMEDABAD, SEPT 18
From Gujarat’s ceramic manufacturing belt to the public markets, Varmora Granito Limited is preparing to invite investors to participate in its next phase of growth, with a ₹708-crore initial public offering (IPO) set to open on Tuesday, September 22.
The Rajkot-based tile and bathware manufacturer fixed a price band of ₹140–148 per equity share, with a face value of ₹2. The three-day public issue will close on September 24, following the anchor investor bidding on September 21.
With a fresh issue intended primarily to reduce borrowings, a substantial offer for sale by an existing investor and a business spanning retail and institutional channels, the IPO places Varmora’s financial performance, debt profile and growth strategy in focus for prospective investors.
At the upper end of the price band, the issue is valued at approximately ₹708 crore, comprising a fresh issue of ₹320 crore and an offer for sale (OFS) of up to 2,62,17,634 equity shares by Katsura Investments, worth approximately ₹388 crore.
At a media interaction in Ahmedabad on Friday, Varmora Granito’s CMD Bhavesh Varmora outlined the company’s upcoming public issue.
The equity shares are proposed to be listed on both BSE and NSE, with NSE designated as the issue’s designated stock exchange.
A debt-reduction issue with a growth story to assess
The fresh issue will contribute ₹320 crore to the company, while the OFS will allow Katsura Investments to sell up to 2.62 crore shares. The distinction is important for investors: proceeds from the fresh issue go to the company, whereas proceeds from the OFS go to the selling shareholder.
The company plans to use fresh-issue proceeds to repay or prepay borrowings, including those of Covertek Ceramica, Varmora Sanitarywares and Simola Tiles, through investments in the subsidiaries, alongside general corporate purposes. The proposed debt reduction is a key financial aspect for investors to examine in the offer documents.
Profit nearly doubles as revenue records modest growth
Varmora reported a sharp improvement in profitability in FY26, with net profit rising to ₹58.4 crore from ₹28.8 crore in the previous financial year. Revenue from operations, however, grew at a more measured pace of 3.7%, reaching ₹1,361.6 crore against ₹1,312.8 crore in FY25.
FY25 vs FY26: Financial snapshot
The earnings trajectory provides one of the key reference points for prospective investors. While the reported net profit more than doubled, the comparatively modest increase in revenue makes it relevant to examine the sustainability of margins, operating costs and cash generation in the company’s offer documents.
Retail-led business with an established B2B channel
Varmora Granito manufactures and markets ceramic and vitrified tiles, alongside bathware products. Its portfolio includes glazed vitrified, polished vitrified and ceramic tiles, with manufacturing capabilities extending to large-format slabs and advanced stone technology.
The retail-led model is complemented by business relationships with architects, builders, contractors and government agencies. This mix gives investors two distinct demand channels to evaluate: consumer-facing retail sales and institutional or project-linked business.
Varmora operates in a competitive listed-company landscape that includes Kajaria Ceramics, Somany Ceramics, Asian Granito India and Orient Bell.
The company’s ability to sustain demand, protect margins and manage working capital will be relevant considerations when assessing its financial performance alongside these industry participants.
Issue structure and investor categories
The IPO is a book-built issue. The offer document provides for allocation across qualified institutional buyers, non-institutional investors and retail individual investors, subject to the applicable SEBI regulations.
Bids can be made for a minimum of 101 equity shares and in multiples of 101 shares thereafter. At the upper price of ₹148, the minimum application works out to ₹14,948.
The issue will be managed by JM Financial Limited, Goldman Sachs (India) Securities Private Limited and SBI Capital Markets Limited as book-running lead managers. KFin Technologies Limited is the registrar.
