Varmora Granito IPO

SEBI approved the proposed IPO of Varmora Granito Ltd. on December 15, 2025. The company plans to launch the IPO subject to market conditions and other necessary approvals. The SEBI approval will remain valid for 12 months. 

The IPO will be a book-built issue comprising a fresh issue of equity shares worth ₹400 crore and an Offer for Sale (OFS) of up to 5.24 crore equity shares by existing shareholders. 

The company plans to list its equity shares on both the NSE and BSE. JM Financial Ltd. will act as the book-running lead manager, while Kfin Technologies Ltd. will serve as the registrar to the issue.

Varmora Granito IPO Important Dates

Yet to be announced

About Varmora Granito

Established in 2003, Varmora Granito Limited manufactures and sells ceramic and vitrified tiles. Its product range covers glazed vitrified tiles (GVT), polished vitrified tiles (PVT) and ceramic tiles, with more than 3,500 SKUs as of March 31, 2025.

The company has built a broad distribution network serving retail and institutional customers. Its B2C network comprises 286 exclusive brand outlets (EBOs) and over 2,000 multi-brand outlets (MBOs), while its B2B operations cater to builders, contractors, developers and government buyers. As of March 31, 2025, Varmora’s products were sold across 949 cities in 27 states and union territories.

Varmora operated nine manufacturing units in the Morbi industrial cluster of Gujarat as of March 31, 2025. The company also has an international presence, exporting its products to more than 100 countries with the support of a 47-member dedicated export team.

The company had 1,156 permanent employees as of March 31, 2025, supporting its manufacturing, sales, distribution and other business functions.

Industry Outlook

The company operates in the building materials and construction materials industry. 

• India’s sanitary and bathware market grew from ₹213 billion in FY19 to ₹331 billion in FY25 and is projected to reach ₹483 billion by FY29, supporting tile demand from construction and renovation.
• Residential sales in India’s top 7 cities grew from 223,991 units in 2021 to 350,893 in 2024, a 16.1% CAGR, driving demand for flooring and wall tiles.
• Rising incomes and focus on aesthetics, functionality and home improvement are increasing renovation frequency and replacement demand for tiles.
• India had 750+ operational malls covering ~200 million sq. ft. in 2024, with 200+ more expected over the next five years, supporting demand for commercial flooring and wall tiles.
• India’s operational lodging rooms are expected to rise from 2.5 million in June 2024 to 3.1 million by 2029, driving tile demand from new hotels and refurbishments.
• India’s retail consumption basket is projected to grow at a 10.5% CAGR from USD 1,061 billion in FY24 to USD 1,581 billion by FY28, supporting spending on organised, aesthetically designed retail spaces and premium tiles.

Varmora Granito IPO Objectives

1. Around ₹320 crore of the ₹400-crore fresh issue proceeds will be used for the repayment or pre-payment of certain outstanding borrowings and term loans, helping reduce debt and interest costs.
2. A portion of the proceeds will fund capital expenditure for new experience centres and retail outlets, supporting the company’s expansion across key markets.
3. The remaining funds will be utilised for general corporate needs, including operational, administrative and other business requirements.

Financial Performance of Varmora Granito

Varmora Granito Peer Comparison

Strengths and Opportunities for Varmora Granito IPO

1. Varmora Granito has one of the largest and most diverse premium tile portfolios among selected listed peers, with 3,500+ SKUs across GVT, PVT and ceramic tiles and 20 surface types as of March 31, 2025.
2. The company has a strong focus on premium GVT tiles, which contributed 69.56% of revenue from operations in FY25, up from 60.27% in FY23, while GVT typically commands 15–30% higher realisations than ceramic and PVT tiles.
3. Its focus on product innovation is supported by a 17-member R&D team and 20 designers, which helped the company launch 2,500+ new tile SKUs and eight new surface finishes between April 2022 and March 2025.
4. Varmora has built a wide distribution network covering 949 cities, with 286 EBOs and over 2,000 MBOs across India and overseas as of March 31, 2025, helping diversify its geographic and dealer base.
5. The company’s growing exclusive retail presence is reflected in its EBO network, which expanded from 219 in FY23 to 286 in FY25, while 121 MBOs were converted into EBOs between April 2022 and March 2025.
6. Its established B2B network includes 1,310 builders and contractors, supported by long-standing relationships with players such as Signature Global and Srijan Group, with relationships spanning over nine and 15 years, respectively.
7. Varmora operates nine manufacturing facilities in Morbi, with 77.29% of its installed capacity coming from facilities established in the last 10 years, while two facilities added in FY24 contributed 17.76 million sq. m. of capacity.
8. The company has differentiated its product offering through advanced technology, becoming the first company in Asia to commercialise IST technology in 2024, enabling the production of marble-like products across four surfaces.
9. Its shift towards premium GVT products has supported an improvement in gross margin from 37.48% in FY23 to 38.95% in FY25, indicating better realisations from the evolving product mix.
10. The company has strengthened brand engagement through a network of 10,000+ influencers and its Varmora Sankalp loyalty platform, which had 23,500 registered users as of March 31, 2025.
11. Varmora benefits from an experienced promoter-led management team, with its three promoters having 13–19+ years of industry experience across sales, marketing, production and procurement.
12. The company has also invested in renewable energy, with 16.22 MW of renewable capacity comprising wind and solar power, which accounted for 29.52% of its total electricity consumption in FY25.

Risks and Threats for Varmora Granito IPO

1. Manufacturing facilities contributed 78.55% of revenue from operations in FY25, making the company vulnerable to production delays, shutdowns or operational disruptions.
2. 69.56% of FY25 revenue came from glazed vitrified tiles (GVT), exposing the company to a slowdown in demand for this product category.
3. 100% of revenue is linked to manufacturing facilities located in Morbi, Gujarat, increasing exposure to regional disruptions affecting production or supply chains.
4. The B2C retail chain accounted for 68.82% of domestic sales in FY25, with all EBOs and MBOs operated through franchisees. Poor franchisee performance could affect sales and distribution.
5. Products manufactured by third-party contract manufacturers contributed 20.64% of FY25 revenue, creating risks from supply disruptions, delays, quality issues or higher manufacturing costs.
6. The company faces volatility in raw material and packaging costs, while its top 10 suppliers accounted for 11.83% of total expenses in FY25, exposing it to supply interruptions and price increases.
7. Manufacturing requires substantial and uninterrupted power and fuel. Power failures or higher-cost alternative fuel sources, including diesel generators, could increase production costs and reduce profitability.

Varmora Granito IPO Reservation

Varmora Granito IPO Promoter Holding

Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel are the promoters of this company. 

Note: Equity dilution will be determined by subtracting the Shareholding Post Issue from the Shareholding Pre Issue.

Varmora Granito IPO Registrar and Lead Managers

Varmora Granito IPO Lead Managers

1. JM Financial Ltd.
2. Goldman Sachs (India) Securities Pvt.Ltd.
3. SBI Capital Markets Ltd.

Registrar for Varmora Granito IPO

Name: Kfin Technologies Ltd. 

Phone: 040-79615565

Email ID: einward.ris@kfintech.com

How To Check the Allotment Status of the Varmora Granito IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for Varmora Granito IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Varmora Granito IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Varmora Granito IPO

Registered Office Address: 8-A, National Highway, Dhuva, Taluka Wankaner, Rajkot –363 641, Gujarat, India; 

Contact Person: Nilesh Sharma 

Telephone: 91 –9909913657

E-mail: investor.relations@varmora.com