Archive · 22 Sep 2026
Varmora Granito IPO Opens Amid Mixed Analyst Reviews
Varmora Granito makes ceramic and vitrified tiles.
Its IPO lets investors buy shares in the company.
The offer is open from September 22 to September 24, at Rs 140-148 per share.
Some analysts like the company because its profits and margins have improved.
They also expect the company to benefit from selling more premium tiles.
Other analysts say the shares are expensive and may not provide much short-term gain.
The company plans to use some IPO money to repay debt.
Investors should also consider risks such as changing fuel costs and reliance on one manufacturing region.
Varmora Granito’s IPO is open from September 22 to September 24, with shares priced at Rs 140-148 apiece.
The company aims to raise Rs 708 crore through a Rs 320 crore fresh issue and an offer-for-sale of up to 2.62 crore shares.
Analysts cite improving margins, premium tile growth, distribution reach and planned debt reduction as positives.
Concerns include rich valuations, execution risks, fuel-price volatility, working-capital cycles and concentration in Morbi manufacturing.
The IPO’s reported grey market premium of Rs 9-12 suggests a potential 6-8% listing gain, while shares are scheduled to list on September 29.
- Who
- Varmora Granito, a Rajkot-based manufacturer and marketer of ceramic and vitrified tiles, is conducting the IPO.
- What
- The company is offering shares in a Rs 708 crore IPO, comprising a fresh issue and an offer-for-sale.
- When
- Bidding runs from September 22 through September 24; listing is scheduled for September 29.
- Where
- Varmora Granito is based in Rajkot, and its shares are scheduled to list on BSE and NSE.
- Why
- The fresh issue will be used mainly to repay debt, with the remainder allocated to general corporate purposes.
Subscribe Case
Caution Case
Business performance
Subscribe Case
Analysts recommending subscription point to improving EBITDA margins, premiumisation, market leadership, pan-India distribution and a healthier balance sheet.
Caution Case
Cautious analysts highlight execution risks, dependence on premium products and the cyclical nature of the tile industry.
Valuation and listing gains
Subscribe Case
Sushil Finance and BP Equities consider the pricing fair or support a subscribe view, citing deleveraging and long-term growth prospects.
Caution Case
Swastika Investmart and SMC Global assign neutral ratings, saying the valuation leaves limited margin of safety and limited room for short-term upside.
Future growth
Subscribe Case
The company could benefit from India’s premium tile market, its GVT portfolio, Tier-II and Tier-III presence, and expansion into eastern and northeastern India.
Caution Case
Fuel-price volatility, working-capital cycles and the concentration of manufacturing in Morbi remain important risks to growth and profitability.
- Price band
- Rs 140-148 per share
- Issue size
- Rs 708 crore
- Minimum application
- 101 equity shares and multiples thereafter
- Issue structure
- Rs 320 crore fresh issue and an offer-for-sale of up to 2.62 crore shares worth Rs 388 crore
- Grey market premium
- Rs 9-12 per share, implying a reported potential listing gain of 6-8%
- Financial performance
- FY2026 revenue was Rs 1,562.53 crore and net profit was Rs 55.09 crore
- Share reservation
- 50% for QIBs, 15% for NIIs and 35% for retail investors
- Anchor investors
- The company raised Rs 212.40 crore from 17 anchor investors at Rs 148 per share