Varmora Granito IPO: Dates, Price Band, Financials and Business Overview
· 5 min read · Written by the BuyUnlistedShares desk. Information only, not investment advice.
Varmora Granito, one of India's leading ceramic and vitrified tile manufacturers, is opening its ₹708-crore mainboard IPO on September 22, 2026. Here's what the offer involves and how the company's financials have moved over the last three years.
Reviewed by the BuyUnlistedShares desk.
Varmora Granito Limited, a Morbi, Gujarat-based manufacturer of ceramic and vitrified tiles, is set to launch its mainboard IPO in the last week of September 2026. The offer comes from a company that has been operating since 2003 and counts itself among the top players in India's large and fast-growing tile industry.
This piece covers the essential IPO details, the company's business model, and how its financial performance has trended over the past three years.
Varmora Granito IPO: Key Details at a Glance
The IPO structure was trimmed from what was originally proposed in the draft prospectus filed in August 2025, which had envisaged a ₹400 crore fresh issue and a larger offer for sale of 5.24 crore shares. In the final structure, Katsura Investments reduced its share sale, and the three individual promoters who had planned to sell shares under the OFS withdrew that portion entirely.
About Varmora Granito's Business
Incorporated in 2003, Varmora Granito manufactures and markets glazed vitrified tiles (GVT), polished vitrified tiles (PVT), and ceramic tiles, along with bathware and allied building materials. Some key points about its operations:
• The company runs eight to nine manufacturing facilities concentrated in Gujarat's Morbi cluster, India's largest tile-manufacturing hub.
• Its product portfolio spans more than 3,500 SKUs across 20 surface types, used for flooring, walls, facades, kitchen slabs, and back panels.
• It was the first company in Asia to commercialise Integrated Stone Technology (IST), introduced in 2024 in partnership with Italy's SACMI.
• GVT products have become the company's core focus, accounting for close to 79% of tile revenue in FY25, up from around 69% in FY23.
• Exports reach more than 100 countries, alongside a domestic network of around 286 exclusive outlets and 2,000-plus multi-brand outlets.
• In FY26, retail (B2C) sales made up about 66.8% of domestic revenue, with the remaining 33.2% coming from B2B channels serving architects, builders, contractors, and government projects.
• The company also holds 16.22 MW of renewable energy capacity from wind and solar sources.
Varmora Granito competes with other listed tile manufacturers such as Kajaria Ceramics, Somany Ceramics, Asian Granito India, and Orient Bell.
What the IPO Proceeds Will Be Used For
Based on the company's draft filings, the bulk of the fresh issue proceeds are earmarked for debt reduction:
• Repayment or prepayment of borrowings for the company and its subsidiaries — Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles.
• The remaining portion is set aside for general corporate purposes.
Financial Performance: FY24 to FY26
Varmora Granito's operating profitability has shown a steady improving trend over the past three fiscal years:
EBITDA grew by roughly 47% between FY24 and FY26, while the EBITDA margin expanded from about 10.2% to 14.2% over the same period. Revenue rose about 5% and profit after tax increased by roughly 79% between FY25 and FY26. The company's gross margin also improved, moving from 37.48% in FY23 to 38.95% in FY25, aided by its growing focus on higher-margin GVT products.
Industry Backdrop
India's tiles market has grown from about ₹36,000 crore in FY19 to around ₹53,100 crore in FY25, and industry estimates cited in the company's filings project it could reach approximately ₹76,900 crore by FY29. Demand in the sector is closely linked to real estate activity, infrastructure spending, and renovation cycles, which also makes it a cyclical, competitive, and raw-material-cost-sensitive business.
Frequently Asked Questions
1. What is Varmora Granito's IPO price band?
The price band for the IPO has been fixed at ₹140 to ₹148 per equity share, with a face value of ₹2 per share.
2. When does the Varmora Granito IPO open and close?
The IPO opens for subscription on September 22, 2026, and closes on September 24, 2026, with anchor investor bidding held a day earlier, on September 21, 2026.
3. What is the lot size and minimum investment for retail investors?
The minimum lot size is 101 shares. At the upper price band of ₹148, this works out to a minimum investment of ₹14,948 for retail investors.
4. What is the total size of the IPO?
The total issue size is approximately ₹708.02 crore, comprising a fresh issue of up to ₹320 crore and an offer for sale of about ₹388.02 crore by Katsura Investments.
5. What does Varmora Granito manufacture?
The company manufactures ceramic and vitrified tiles — including glazed vitrified tiles (GVT), polished vitrified tiles (PVT), and ceramic tiles — along with bathware and other building materials, from its manufacturing base in Morbi, Gujarat.
6. How will the IPO proceeds be used?
Most of the fresh issue proceeds are intended for repaying borrowings of the company and its subsidiaries, with the remainder allocated toward general corporate purposes.
7. When are the shares expected to list?
Allotment is expected to be finalised on September 25, 2026, with shares tentatively scheduled to list on the BSE and NSE on September 29, 2026.
8. Who are the lead managers and registrar for this IPO?
JM Financial Limited, Goldman Sachs (India) Securities Private Limited, and SBI Capital Markets Limited are the book-running lead managers, while Kfin Technologies Limited is the registrar to the issue.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.
