Varmora Granito IPO Analysis: Should You Apply? GMP, Review & Details

Varmora Granito is a MAINBOARD IPO in the Ceramics sector. The issue price band is ₹140.0–₹148.0 per share. Issue size is ₹708.02 crore.

Varmora Granito IPO — Key Details

Company Overview

Varmora Granito Limited, established in 2003, specializes in manufacturing and marketing ceramic and vitrified tiles. The company offers a diverse product range, including glazed vitrified tiles (GVT), polished vitrified tiles (PVT), and ceramic tiles. Its distribution network spans 949 cities across 27 states and union territories in India, utilizing both Business-to-Consumer (B2C) and Business-to-Business (B2B) channels. Varmora operates nine manufacturing facilities located in the Morbi industrial cluster of Gujarat and exports products to over 100 countries.

Financial Performance

Total income was ₹1,472.58 Cr in the period ending 31 Mar 2024, increasing to ₹1,492.68 Cr by 31 Mar 2025, and further rising to ₹1,562.53 Cr by 31 Mar 2026. This indicates a steady growth in revenue over the reported periods. Profit After Tax (PAT) was ₹44.94 Cr in the period ending 31 Mar 2024, which increased to ₹30.77 Cr by 31 Mar 2025, and further rose to ₹55.09 Cr by 31 Mar 2026. This shows a positive trend in profitability, particularly in the most recent period.

Objects of the Issue

The company plans to use the net proceeds from the issue for two main purposes: repayment or pre-payment of outstanding borrowings and accrued interest amounting to ₹245.00 Cr, and for general corporate purposes.

Understanding Grey Market Premium (GMP)

The grey market refers to the unofficial trading of shares before they are listed on the stock exchange. The Grey Market Premium (GMP) is an indicator of the expected listing price of an IPO based on demand in the grey market. A high GMP suggests strong demand, while a low or negative GMP indicates weaker demand.

Subscription Status

As of 24th September 2026, the IPO was subscribed 1.6 times overall. The Institutional category saw a subscription of 3.1 times, while the Retail category was subscribed 1.02 times. However, the Non-Institutional (NII) category was subscribed only 0.94 times.

Peer Comparison

• Varmora Granito has a NAV of ₹39.52 and a RoNW of 7.79%.
• Orient Bell Ltd. has a P/E of 47.67.
• Asian Granito India Ltd. has a P/E of 72.
• Somany Ceramics Ltd. has a P/E of 28.55.
• Kajaria Ceramics Ltd. has a P/E of 40.27.

IPO Timeline

The IPO opens for subscription on 22nd September 2026 and closes on 24th September 2026. Allotment of shares will be done on 25th September 2026, and the listing date is set for 29th September 2026.

Should You Apply for Varmora Granito IPO?

Investors comfortable with short-term volatility and a long-term horizon typically weigh IPOs like this against their overall investment strategy, considering factors like market trends and company fundamentals.

Conservative investors or those seeking guaranteed returns may want to avoid IPOs, as they can be subject to significant price fluctuations and market risks.

This is general risk-profile education, not a personal recommendation to apply or avoid this specific IPO — TopFund is not a SEBI-registered investment adviser.

Listing Day Risks

Listing gains refer to the potential profit an investor might make when shares are listed on the stock exchange, often influenced by market demand and investor sentiment. However, these gains are not guaranteed, and prices can fluctuate significantly on the listing day.

Trending Searches

Disclaimer: This is educational content, not investment advice. GMP is an unofficial grey-market indicator, unregulated and never guaranteed. TopFund is not a SEBI-registered investment adviser — please do your own research or consult a qualified adviser before applying to any IPO.