Varmora Granito IPO

The company has consistently been among the first in India to introduce new tile technologies, and in 2024 became the first company in Asia to commercialise Integrated Stone Technology (IST) through a partnership with SACMI, enabling marble-like vitrified tiles with superior durability and design versatility. Between Fiscal 2023 and Fiscal 2025, it launched over 2,500 new tile SKUs. Distribution is supported by a pan-India, multi-channel network of 249 exclusive brand outlets and over 3,000 multi-brand outlets across 988 cities, complemented by B2B sales to builders, contractors, and government agencies. As of March 31, 2026, the company had 1,153 permanent employees.

The IPO comprises a fresh issue of 2,16,21,621 shares (₹302.70–320 Cr) and an offer for sale of 2,62,17,234 shares (₹367.04–388.02 Cr), for a total issue size of ₹687.04–708.02 Cr depending on the final price within the ₹140–148 band. Lot size is 101 shares. Net proceeds from the fresh issue are earmarked entirely for repayment/prepayment of borrowings (₹320 Cr at the upper band), with general corporate purposes receiving no separately disclosed allocation.

At the upper price band, the post-issue P/E works out to roughly 50.72x–53.62x (pre-issue: ~45.90x–48.52x), reflecting annualized FY26 PAT and dilution impact. RoNW improved to 7.79% for FY26 from 4.88% in FY25, alongside margin and ROCE improvement, even though revenue grew only modestly (about 5% FY25→FY26) — most of the improvement came from margin expansion (PAT margin rose from 2.44% to 4.10%) rather than top-line growth. Net Debt/Equity improved from 0.35 to 0.24 over the same period. A peer comparison shows Varmora priced at a premium P/E (53.62x) relative to Somany Ceramics (24.94x) and Kajaria Ceramics (35.24x), though below Asian Granito India (87.36x).