Archive · 29 Sep 2026
Varmora Granito Shares Debut Near 5%; Investors Weigh Valuation
Varmora Granito makes tiles and bathroom products.
Its shares began trading on September 29 after the company sold shares to the public.
The IPO price was Rs 148 per share.
The shares opened at Rs 155 on the NSE and Rs 152 on the BSE.
This meant the stock started above its IPO price.
Investors applied for roughly 1.6 times the shares available, with large institutions showing the most interest.
The company’s income and profit increased in FY26.
However, one analyst said the valuation is demanding and investors should watch earnings and important price levels before buying more shares.
Varmora Granito shares debuted at Rs 155 on the NSE, a 4.73% premium to the Rs 148 IPO price, while the BSE opening was Rs 152.
The Rs 708.02 crore IPO comprised a Rs 320 crore fresh issue and a Rs 388.02 crore offer for sale by Katsura Investments.
The IPO was subscribed between 1.58 and 1.60 times, with QIB demand at 3.10 times, retail subscription at 1.02 times and NII subscription at 0.94 times.
The company reported FY26 total income of Rs 1,563 crore, profit after tax of Rs 55 crore and EBITDA of Rs 221.56 crore.
Analyst Shivani Nyati said existing investors could use a stop-loss near Rs 145, while fresh positions may wait for better price discovery and sustained earnings.
- Who
- Varmora Granito, its investors and participants in its IPO.
- What
- The tiles and bathware maker listed its shares at a premium to the Rs 148 IPO price.
- When
- The IPO ran from September 22 to September 24, and the shares debuted on September 29.
- Where
- The shares debuted on the National Stock Exchange of India and the Bombay Stock Exchange.
- Why
- The company raised funds partly to repay borrowings and subsidiary dues, while investors are assessing whether earnings can support its post-listing valuation.
Growth and Hold Case
Valuation and Caution Case
Business growth
Growth and Hold Case
The company’s total income, profit after tax and EBITDA increased in FY26, while GVT and technology-led products gained importance.
Valuation and Caution Case
Investors still need to determine whether the earnings improvement can support the company’s post-listing market valuation.
Product and distribution strengths
Growth and Hold Case
Brokerages highlighted the company’s eight manufacturing facilities in Morbi, 305 exclusive brand outlets and 2,758 multi-brand outlets.
Valuation and Caution Case
The stock’s valuation was described as demanding at around 60 times post-listing price-to-earnings.
Trading decision
Growth and Hold Case
Existing investors may continue holding the shares while monitoring the Rs 145-Rs 148 support zone and earnings performance.
Valuation and Caution Case
Shivani Nyati said fresh positions should be considered only after better price discovery and sustained earnings; investors may use a stop-loss around Rs 145.
- IPO size
- Rs 708.02 crore
- IPO price
- Rs 148 per share
- Listing prices
- Rs 155 on the NSE and Rs 152 on the BSE
- Overall subscription
- Reported as 1.58 times on the final day and 1.60 times by the end of bidding
- Investor demand
- QIBs: 3.10 times; retail: 1.02 times; NIIs: 0.94 times
- FY26 total income
- Rs 1,563 crore
- FY26 profit after tax
- Rs 55 crore
- Analyst price levels
- Support at Rs 148-Rs 145 and upside range at Rs 155-Rs 160
