Varmora Granito IPO closed Day 3 with an overall subscription of 1.57x, driven by a massive surge in QIB interest to 3.16x. Retail and NII categories also showed strong growth on the final day.

Subscription Status

The Varmora Granito IPO witnessed a dramatic acceleration in demand on the final day, September 24, 2026. The issue achieved full subscription, with the cumulative rate climbing significantly from 0.27x on Day 2 to 1.57x by close. The most notable development was the QIB category, which surged from 0.11x on Day 2 to 3.16x on Day 3, indicating strong late-stage institutional conviction.

Intra-day Timeline on 22-09-2026

Category-wise Breakdown

Retail investors remained a strong pillar of support, covering nearly 98% of their allotted quota. Institutional demand showed a dramatic turnaround, with QIBs oversubscribing their portion of the issue by more than three times. Non-Institutional Investors showed moderate interest, with small HNIs slightly outpacing big HNIs in final subscription rates.

• Retail: 0.98x
• NII (Big HNI): 0.90x
• NII (Small HNI): 0.92x
• QIB: 3.16x
• Employees: 0x

Offer Details

The Varmora Granito IPO opened on September 22, 2026, and closed on September 24, 2026. The price band was set between ₹140.00000 and ₹148.00000 per share. The minimum bid quantity was fixed at 101 shares. The issue size ranged from ₹14,140 crore to ₹500,000 crore based on the final price band selection.

About the Company

Varmora Granito Limited is an India-based tile manufacturer with over 23 years of operating history. The company offers a diverse portfolio of more than 3,500 SKUs across GVT, PVT, ceramic tiles, bathware, and adhesives. It operates eight manufacturing facilities in the Morbi cluster, Gujarat, and is the first company in Asia to commercialize SACMI's Integrated Stone Technology (IST). The company distributes products through a network of 305 Exclusive Brand Outlets (EBOs) and 2,758 Multi-Brand Outlets (MBOs) across 988 cities in India, with exports to over 100 countries.

Financial Highlights

The company reported revenue from operations of ₹1,512.46 crore in FY2026, up from ₹1,446.03 crore in FY2025. Net profit stood at ₹55.09 crore in FY2026, compared to ₹30.77 crore in FY2025.

Objects of the Issue

The proceeds from the issue are intended for the following purposes:

• Repayment/Pre-payment of Outstanding Borrowings – Company: ₹215.00 crore towards repayment or pre-payment of outstanding borrowings and accrued interest to reduce indebtedness and debt servicing costs.
• Repayment/Pre-payment of Outstanding Borrowings – Wholly-Owned Subsidiaries: ₹30.00 crore to invest in Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited for repayment of their borrowings.
• General Corporate Purposes: Balance net proceeds towards growth opportunities, brand building, marketing, strategic initiatives, partnerships, acquisitions, and ordinary course business expenses, subject to a cap of 25% of Gross Proceeds.

Risk Factors

Key risks associated with the investment include:

• Geographic Concentration: 81.72% of revenue is derived from in-house manufacturing facilities concentrated in Morbi, Gujarat. Disruptions such as natural disasters or agitations could severely impact production.
• Revenue Concentration: 73.98% of revenue comes from GVT and technical products, making the company vulnerable to demand slowdowns in this specific segment.
• Geopolitical Impact: The US-Israel-Iran conflict has disrupted fuel supply and export shipping routes, impacting energy costs and export operations which account for 21.11% of product sales.
• Franchisee Dependency: 66.80% of domestic sales are through franchisees. Non-performance or defection of these independent third parties could damage brand reputation and revenue.
• Raw Material Volatility: The company faces exposure to price volatility and supply disruptions for key raw materials like clays and glaze, which accounted for 24.56% of total income in FY2026.

What's Next

Allotment for the Varmora Granito IPO is scheduled for September 25, 2026. The shares are expected to list on the stock exchanges on September 29, 2026.