The Varmora Granito IPO opens today, 22 September 2026, and closes 24 September 2026. The price band is ₹140 to ₹148 per share, the lot size is 101 shares, and the total issue size is ₹708.02 crore. This article covers the dates, the lot economics, three years of financials, the valuation against listed peers, and the key risks, all traced to the Red Herring Prospectus (RHP) dated 16 September 2026.
Key Details
| Parameter | Details |
|---|---|
| IPO Dates | 22 September 2026 to 24 September 2026 |
| Anchor Book | 21 September 2026 (₹212.41 crore raised from 17 anchor investors) |
| Face Value | ₹2 per equity share |
| Price Band | ₹140 to ₹148 per equity share |
| Lot Size | 101 shares (₹14,140 at floor, ₹14,948 at cap) |
| Issue Type | Book-built, fresh issue and offer for sale |
| Total Issue Size | ₹708.02 crore |
| Fresh Issue | ₹320 crore |
| Offer for Sale | ₹388.02 crore (up to 2,62,17,634 shares by Katsura Investments) |
| Listing Exchanges | BSE and NSE (NSE is the Designated Stock Exchange) |
| Allotment Date | 25 September 2026 |
| Credit to Demat | 28 September 2026 |
| Listing Date | 29 September 2026 (tentative) |
| Registrar | KFin Technologies Limited |
| Book Running Lead Managers | JM Financial Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited |
Source and currency: the offer structure, promoters, BRLMs and dates come from the RHP dated 16 September 2026 and the anchor allotment notice dated 21 September 2026. The price band and lot size come from the price band advertisement published alongside the RHP. All dates other than the bid open and close are tentative and can shift with the basis of allotment.
Reservation Split
The offer is made under Regulation 6(1) of the SEBI ICDR Regulations, 2018.
| Category | Share of the Net Offer |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% |
| Non-Institutional Investors (NII) | Not less than 15% |
| Retail Individual Investors (RII) | Not less than 35% |
Within the QIB portion, up to 60% can go to anchor investors. Of the anchor book, 40% is reserved for domestic mutual funds and life insurance companies and pension funds at or above the anchor allocation price. On 21 September 2026, 17 anchor investors were allotted 1,43,51,775 shares at ₹148 (the cap price), raising ₹212.41 crore. ICICI Prudential Mutual Fund, Goldman Sachs India Equity Portfolio and Bandhan Mutual Fund each took 11.77% of the anchor book.
What a Retail Application Actually Costs
- One lot at the floor price (₹140): 101 shares × ₹140 = ₹14,140
- One lot at the cap price (₹148): 101 shares × ₹148 = ₹14,948
Funds are blocked at the cap price regardless of where you bid within the band, so budget ₹14,948 per lot.
Maximum retail application: SEBI caps a Retail Individual Investor at ₹2,00,000 per application. At ₹14,948 a lot, 200000 ÷ 14948 = 13.37, so the most a retail investor can apply for is 13 lots (1,313 shares), worth ₹1,94,324. A 14th lot would cost ₹2,09,272, which pushes the application past the retail cap and into the small non-institutional investor (sNII) category, with a different allotment process.
About the Company
Varmora Granito Limited was incorporated on 18 November 2003 as Varmora Granito Private Limited and converted to a public company on 14 May 2025. Its registered office is at 8-A, National Highway, Dhuva, Taluka Wankaner, Rajkot, Gujarat, and its corporate office is in Ahmedabad. It manufactures and markets glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, sanitaryware, bath fittings and tile adhesives.
- Manufacturing: Eight in-house manufacturing facilities, all in the Morbi cluster of Gujarat, plus around 304 third-party contract manufacturers as of 31 March 2026. In-house facilities supplied 81.72% of revenue from operations in FY26, up from 66.83% in FY24, a genuine shift toward in-house control over quality and margins.
- Product mix: GVT and technical products made up 73.98% of revenue from operations in FY26, up from 65.54% in FY24. The company says it was the first in the industry to launch digitally printed wall tiles (2010) and homogenous-body slabs (2006), and the first in Asia to commercialise Integrated Stone Technology (2024), through a technology partnership with the Italian equipment maker SACMI Imola S.C. These claims are sourced to an industry report commissioned by the company (the Technopak Report) and are not independently verified here.
- Distribution: A pan-India, franchise-led network of exclusive brand outlets (EBOs) and multi-brand outlets (MBOs), reported at 305 EBOs and 2,758 MBOs across 988 cities, alongside a B2B channel serving architects, builders and contractors, and exports to more than 100 countries.
- Group structure: Wholly-owned subsidiaries Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (formerly a LLP), and Simola Tiles LLP, are the entities whose borrowings the fresh issue proceeds will help repay. A joint venture, Allemby Ceramics Private Limited, is developing a facility in Tezpur, Assam.
- Employees: Around 1,153 permanent employees as of 31 March 2026.
- Promoters: Bhavesh Vallabhdas Varmora (Chairman and Managing Director), Hiren R Varmora and Pramodkumar Parsotambhai Patel hold 51.3% pre-issue. None of the promoters is selling shares in this offer; the entire offer for sale is by Katsura Investments, an affiliate of Carlyle Group.
Financial Performance
Restated consolidated figures, ₹ crore.
| Particulars | FY26 | FY25 | FY24 | 2-yr CAGR |
|---|---|---|---|---|
| Total Income | 1,562.53 | 1,492.68 | 1,472.58 | 3.01% |
| Revenue growth (YoY) | 4.68% | 1.36% | – | – |
| Gross Margin | 37.92% | 38.95% | 35.26% | – |
| EBITDA | 221.56 | 198.29 | 150.33 | 21.40% |
| EBITDA Margin | 14.18% | 13.28% | 10.21% | – |
| Profit After Tax (PAT) | 55.09 | 30.77 | 44.94 | 10.72% |
| PAT Margin | 3.53% | 2.06% | 3.05% | – |
| Net Worth | 810.22 | 743.20 | 703.36 | 7.33% |
| Return on Equity (RoE) | 6.80% | 4.14% | 6.39% | – |
| Total Borrowings | 357.95 | 505.16 | 412.89 | – |
| Debt-to-Equity | 0.44 | 0.68 | 0.59 | – |
Margins are calculated on total income, matching the RHP’s own definitions. Two things stand out. First, EBITDA grew faster (21.40% CAGR) than revenue (3.01% CAGR), so margin expansion, not volume growth, is doing the work; the EBITDA margin rose from 10.21% in FY24 to 14.18% in FY26. Second, PAT dipped sharply in FY25 (₹30.77 crore, against ₹44.94 crore in FY24) before recovering to ₹55.09 crore in FY26, so the two-year PAT CAGR of 10.72% masks a non-linear path, not a smooth climb.
Borrowings and the debt-to-equity ratio have come down from their FY25 peak, which the debt repayment planned from this issue continues.
These are historical, restated disclosures and do not indicate how the business will perform after listing.
Valuation Metrics Explained
| Metric | FY26 |
|---|---|
| EPS (Basic) | ₹3.08 |
| RoNW | 7.79% |
| Net Asset Value (NAV) per share | ₹39.52 |
EPS (Basic) is PAT divided by the weighted average number of equity shares outstanding during the year. RoNW is PAT divided by net worth (a net worth defined for this purpose in the RHP’s Basis for Offer Price section, which is not the same figure as total equity on the balance sheet). NAV per share is net worth divided by the number of equity shares outstanding. P/E is the offer price divided by EPS.
Working Out the P/E
The RHP itself leaves the P/E column blank, because the price band is fixed after the document is filed. Using the FY26 basic EPS of ₹3.08 against the announced band:
- P/E at the floor price (₹140): 140 ÷ 3.08 = 45.45x
- P/E at the cap price (₹148): 148 ÷ 3.08 = 48.05x
- Price to book at the cap price: 148 ÷ 39.52 = 3.74x (3.54x at the floor)
A post-issue P/E, which spreads the same FY26 profit over a larger share count after the fresh issue, works out to roughly 54x at the cap price. Treat this one figure as approximate: it depends on the exact pre-offer share count, which this article could not independently confirm from the RHP’s Capital Structure section. A press estimate puts the post-issue market capitalisation at approximately ₹3,345 crore at the cap price; an independent calculation from the figures verified here gives roughly ₹2,970 crore. Both are approximate for the same reason.
How That Compares With Listed Peers
The RHP’s own peer table, using FY26 figures:
| Company | Revenue from Operations (₹ cr) | Face Value (₹) | EPS (Basic) (₹) | P/E (x) | RoNW | NAV per share (₹) |
|---|---|---|---|---|---|---|
| Varmora Granito Limited | 1,512.46 | 2 | 3.08 | 45.45–48.05* | 7.79% | 39.52 |
| Kajaria Ceramics Limited | 4,830.36 | 1 | 30.48 | 35.24 | 15.89% | 191.11 |
| Somany Ceramics Limited | 2,789.84 | 2 | 19.80 | 24.94 | 8.79% | 202.11 |
| Asian Granito India Limited | 1,858.06 | 10 | 0.70 | 87.36 | 1.23% | 51.36 |
| Orient Bell Limited | 691.45 | 10 | 8.46 | 39.97 | 3.78% | 222.78 |
*Varmora’s own P/E is blank in the RHP; the range shown is calculated in this article at the floor and cap price, not disclosed by the company.
Read plainly: at the cap price, Varmora is asking for a P/E (48.05x) close to the peer average of roughly 47x, sitting above Kajaria (35.24x) and Somany (24.94x), below Asian Granito (87.36x), and just above Orient Bell (39.97x). But its RoNW (7.79%) is well below Kajaria’s (15.89%) and Somany’s (8.79%), and its NAV per share (₹39.52) is a fraction of every peer’s. In plain terms, the issue is priced closer to a market leader’s multiple while its return on net worth trails the two most comparable, similarly-sized peers. The counter-argument is that FY26 profit recovered sharply from FY25 and margins are expanding, so a one-year RoNW snapshot may understate the trend. Neither point settles the question; it is for the reader to weigh alongside their own view of the tile industry’s growth.
These ratios are shared for educational understanding, not as investment guidance.
Objects of the Issue
The ₹388.02 crore offer-for-sale portion goes entirely to Katsura Investments, the selling shareholder; none of it reaches the company. Only the ₹320 crore fresh issue funds the business.
| Object | Amount |
|---|---|
| Repayment/pre-payment of borrowings (of the Company and, through investment, its subsidiaries Covertek Ceramica, Varmora Sanitarywares and Simola Tiles LLP) | ₹245 crore |
| General corporate purposes | Balance (~₹75 crore) |
The ₹245 crore earmarked for debt repayment is about 68% of the company’s total FY26 borrowings of ₹357.95 crore, so this is a partial, not full, deleveraging. The RHP’s own capital structure and financial indebtedness sections (which give the lender-wise breakdown, interest rates and the SEBI ICDR cap on unidentified general corporate spending) could not be retrieved for this article; a credit rating agency (CRISIL Ratings Limited) has been appointed to monitor use of proceeds, but no specific rating figure was available to confirm here.
Strengths and Risk Factors
| Strengths | Risk Factors |
|---|---|
| In-house manufacturing rose from 66.83% (FY24) to 81.72% (FY26) of revenue from operations, tightening control over quality and cost. | 81.72% of FY26 revenue came from manufacturing facilities that are all located in the Morbi region of Gujarat; Cyclone Biparjoy disrupted operations there for about three weeks in FY24. |
| GVT and technical products, the company’s premium segment, grew to 73.98% of FY26 revenue from operations, from 65.54% in FY24. | GVT and technical products alone are 73.98% of revenue, so any slowdown in demand for this specific segment has an outsized effect. |
| EBITDA margin expanded from 10.21% (FY24) to 14.18% (FY26), a 397 basis-point gain in two years. | Debt-to-equity, while down from FY25, still stood at 0.44x in FY26, and the business is capital-intensive with ongoing expansion plans. |
| The company reports 305 EBOs and 2,758 MBOs across 988 cities and exports to over 100 countries, reducing dependence on any one region. | Reliance on 304 third-party contract manufacturers as of 31 March 2026 for part of production not covered in-house. |
| None of the three promoters is selling in this offer; the entire offer for sale is by the financial investor Katsura Investments. | Outstanding legal proceedings and certain auditor observations under the Companies (Auditor’s Report) Order are disclosed for FY24, FY25 and FY26; this article has not reviewed their individual materiality. |
This is a summary, not a substitute for the “Risk Factors” section of the RHP (page 19 onward), which lists more than 50 numbered risks in full.
How to Apply
- Log in to your broker’s app or your bank’s net banking.
- Open the IPO section and select Varmora Granito Limited.
- Enter the number of lots (multiples of 101 shares) and your bid price, or select the cut-off price.
- Enter your UPI ID, or confirm your ASBA-linked bank account.
- Submit the application and approve the UPI mandate request in your UPI app before 5:00 pm on the bid closing date.
Bank ASBA (Application Supported by Blocked Amount) through net banking is the alternative route to a broker app. If you do not yet have a demat account, you will need to open a demat account before 24 September 2026 to apply.
Checking Your Allotment
The basis of allotment is expected on 25 September 2026. You can check your status:
- On the registrar’s website, KFin Technologies, at its IPO status page.
- On the BSE or NSE website, under the IPO allotment section.
- Inside your broker’s app, under orders or IPO history.
You will need your PAN, application number, or DP/Client ID. Refunds for unsuccessful or partial applications, and the credit of shares for successful ones, are both expected on 28 September 2026, ahead of the tentative listing on 29 September 2026.
Key Takeaways
- The issue runs 22 to 24 September 2026, priced at ₹140 to ₹148, in a 101-share lot.
- It is a ₹708.02 crore offer: ₹320 crore fresh issue and ₹388.02 crore offer for sale by Katsura Investments; the promoters are not selling.
- FY26 total income was ₹1,562.53 crore and PAT was ₹55.09 crore, with PAT dipping in FY25 before recovering in FY26.
- At the cap price, the implied P/E is 48.05x on FY26 basic EPS, close to the four-peer average of roughly 47x, while RoNW (7.79%) trails the two closest-sized listed peers.
- Debt-to-equity has improved from 0.68x (FY25) to 0.44x (FY26), and roughly 68% of FY26 borrowings would be repaid from this issue.
- Manufacturing is concentrated entirely in Gujarat’s Morbi region, and over 70% of revenue depends on one product category (GVT and technical tiles).
Investments in securities are subject to market risks. This is not investment advice; please read all related documents carefully before investing.
Leave a Reply