Varmora Granito Submits IPO Papers With SEBI, Aims ₹400 Crore via Fresh Issue

Varmora Granito Ltd, involved in tiles and bathware manufacture, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to raise funds through a combination of a fresh equity issue and an Offer for Sale (OFS).

Varmora Granito IPO Structure

The proposed public issue will include a fresh issue of shares worth ₹400 crore and an OFS of 5.24 crore equity shares, as per DHRP. Shares under the OFS will be sold by promoters Parsotambhai Jivrajbhai Patel, Ramanbhai Jivrajbhai Varmora, Vallabhbhai Jivrajbhai Varmora, and investor Kastura Investments.

Use of Proceeds from IPO

According to the DRHP filed on August 7, ₹320 crore from the fresh issue will be used to repay borrowings of the company and its subsidiaries, Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles. The remaining ₹40 crore will be allocated for general corporate purposes.

Operations and Product Range

Varmora Granito operates 9 manufacturing facilities located in the Morbi cluster of Gujarat. The company produces glazed vitrified, polished vitrified, and ceramic tiles.

As of March 31, 2025, it offered over 3,500 stock-keeping units (SKUs) across 20 surface types, catering to applications such as flooring, walls, facades, kitchen slabs, and back panels. In FY25, it introduced marble-look products in four surface finishes using integrated stone technology.

The company sells its products through a mix of retail and institutional channels. This includes 286 exclusive brand outlets, more than 2,000 multi-brand outlets, and B2B channels such as builders, contractors, developers, and government projects.

According to a report by Technopak, the Indian domestic tiles market was valued at ₹53,100 crore in Fiscal Year 25, up from ₹36,000 crore in FY19, registering a CAGR of 6.7%. The market is projected to reach ₹76,900 crore by Fiscal Year 29, with a CAGR of 9.7% from Fiscal Year 25 to Fiscal Year 29.

Read More: IPO Alert: Executive Centre India Files DRHP with SEBI to Raise ₹2,600 Crore!

Conclusion

The IPO is subject to SEBI’s approval. Once clearance is received, the company will announce the price band and opening date. Further details of the offer will be shared in the final prospectus. JM Financial, Goldman Sachs (India) Securities, and SBI Capital Markets have been appointed as the book-running lead managers for the proposed IPO.

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