Varmora Granito IPO opens today: Should you subscribe? Check price band, review, fresh GMP & more

The initial public offering (IPO) of Varmora Granito, which opens for bidding on Tuesday, September 22, has managed to attract mixed reviews from the analysts. Brokerage firms are positive on the tiles and sanitaryware player on the back of its solid financials, expanding margins, market leadership and health balance sheet. However, rich valuations and execution risks leave limited room for upside. Rajkot-based Varmora Granito is selling its shares in the range of Rs 140-148 apeice. Investors can apply for a minimum of 101 equity shares and its multiples thereafter. The issue can be subscribed until Thursday, September 24. Varmora Granito is eyeing to raise a total of Rs 708 crore from its primary stake sale.

Varmora has the second highest tile revenue among listed peers, with 3,063 stores across 249 cities and 81.7 per cent of products manufactured in-house. Its EBITDA margins improved to 14 per cent in FY26; GVT & technical products now 84 per cent of tile revenue. Varmora demands a premium over peer leader Kajaria Ceramics, despite reporting lower return metrics, said Swastika Investmart. "While balance sheet health improves significantly post-IPO, the asking valuation leaves limited margin of safety for short-term listing gains. Long-term value depends on sustained execution in the premium GVT market and raw material cost stability," it added with a 'neutral' rating for the issue. Besides an offer-for-sale (OFS) of up to 2.62 crore equity shares worth Rs 388 crore, while the IPO of Varmora Granito includes a fresh share sale of Rs 320 crore. The net proceeds from the issue shall be utilized towards repayment of debt availed by the company and its wholly-owned subsidiaries, and general corporate purposes. Varmora has demonstrated improving financial performance with EBITDA margin expansion, aided by a shift toward premium tiles. However, the valuation leaves a limited valuation cushion, said Sushil Finance. "Given the fair-value pricing, a competitive, cyclical tile industry, 23-year track record, premiumisation strategy and deleveraging balance sheet, we recommend 'subscribe' rating," it said. Varmora Granito, incorporated in 2003, manufactures and markets ceramic and vitrified tiles, including glazed vitrified tiles (GVT), polished vitrified tiles (PVT) and ceramic tiles. It focuses on premium, technology-driven products, with GVT and technical tiles accounting for around 84 per cent of its tile revenue in Fiscal 2026. Varmora is positioned to benefit from India’s growing premium tile market, backed by its GVT portfolio, pan-India distribution and expanding EBO network. Its Tier-II/III focus and expansion into East and Northeast India could support growth and diversification. However, dependence on premium products and Morbi manufacturing remain key concerns, SMC Global said, giving it a 'neutral' tag. Ahead of its IPO, Varmora Granito raised a total of Rs 212.40 crore from 17 anchor investors as it allocated 1,43,51,775 equity shares from Rs 148 apiece. Its anchor book included names like ICICI Prudential MF, Bandhan MF, Goldman Sachs, Bharti Axa Life, 360 One Equity Opportunity Fund, Turnaround Opportunities Fund, Motilal Oswal MF, JM Financial MF, Union MF, Societe Generale and more On the valuation front, Varmora Granito commands a P/E multiple of 48.5 times, moderating meaningfully from 67.6 times in FY24 and 85.1 times in FY25 as earnings rebounded and operational scale took effect. The fresh issue is earmarked for debt prepayment is poised to significantly pare down financing costs, accelerate return ratios, and de-risk the balance sheet, said BP Equities. "While input fuel price volatility, regional production concentration in Morbi, and working capital cycles remain essential monitorables, the medium to long term outlook stays robust given the structural housing tailwinds and  continuous product premiumization. We, thus, recommend a 'subscribe' rating for this issue," it added. Varmora Granito reported a net profit at Rs 55.09 crore with a revenue of Rs 1,562.53 crore for the financial ended on March 31, 2026. The company reported a net profit at Rs 30.77 crore with a revenue of Rs 1,492.68 crore for the fiscal year 2024-25. At the current valuations, it is commanding a market capitalization of 3,345 crore. Varmora Granito has reserved 50 per cent shares for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) were reserved 15 per cent. Retail investors will get 35 per cent of the shares allocated towards them. Last heard, Varmora Granito was commanding a grey market premium (GMP) of Rs 9-12 apiece, suggesting a listing pop of 6-8 per cent for the investors. JM Financial Ltd, Goldman Sachs (India) Securities and SBI Capital Markets are the book running lead managers of Varmora Granito IPO and Kfin Technologies Ltd is the registrar of the issue. Shares of the company shall be listed on both BSE Ltd and NSE on Tuesday, September 29.