Varmora Granito IPO Day 1: subscribed 0.06x; retail leads demand

2 min read | Published on 22 Sept 2026, 11:24 AM |Updated on 22 Sept 2026, 12:22 PM

Reviewed by

Ritika DScanX News Team

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Key Highlights

Varmora Granito IPO Day 1 subscription reached 0.06x.
Retail investors subscribed 0.10x, leading the demand.
QIB subscription remained at 0.00x.
Price band is set at ₹140 - ₹148 per share.
Allotment date is September 25, 2026.

*this image is generated using AI for illustrative purposes only.

Varmora Granito’s public issue was subscribed 0.06 times on Day 1. Retail investors led the demand with a subscription of 0.10x, while Non-Institutional Investors (bHNI) saw 0.05x interest. Qualified Institutional Buyers (QIB) recorded 0x subscription.

Subscription Status

The issue witnessed a slow start on the first day of bidding. Retail investors were the primary drivers of demand, whereas institutional participation remained absent. Total subscription jumped 50% intra-day, ticking up from 0.04x to 0.06x.

Day	Date	QIB	NII (bHNI)	NII (sHNI)	Retail	Total
Day 1	22-09-2026	0.00x	0.05x	0.00x	0.10x	0.06x

Intra-day Timeline on 22-09-2026

Time (IST)	QIB	NII (bHNI)	Retail	Total
11:15	0.00x	0.04x	0.08x	0.04x
12:15	0.00x	0.05x	0.10x	0.06x

Offer Details

Company: Varmora Granito
Price Band: ₹140.00000 - ₹148.00000
Issue Size: 14140 - 500000
Min Bid Qty: 101
Open: 2026-09-22 10:00:00
Close: 2026-09-24 17:00:00

About the Company

Varmora Granito Limited is an India-based tile manufacturer with over 23 years of operating history, offering a diverse portfolio of more than 3,500 SKUs across GVT, PVT, ceramic tiles, bathware, and adhesives. The company operates eight manufacturing facilities in the Morbi cluster, Gujarat, with 81.72% of FY2026 revenue generated from in-house production. It distributes products through a network of 305 EBOs and 2,758 MBOs across 988 cities in India, exporting to over 100 countries. Revenue from operations stood at ₹15,124.64 million in FY2026.

Financial Highlights

Particulars	FY2026 (₹ Cr)	FY2025 (₹ Cr)	FY2024 (₹ Cr)
Revenue from Operations	1512.46	1446.03	1435.48
Total Revenue	1562.53	1492.68	1472.58
Total Expenses	1486.36	1456.28	1412.92
Profit Before Tax	76.62	37.65	63.04
Total Profit	55.09	30.77	44.94

Objects of the Issue

Repayment/Pre-payment of Outstanding Borrowings – Company: Utilization of proceeds towards repayment/pre-payment of certain outstanding borrowings and accrued interest availed by the company (₹215.00 crore).
Repayment/Pre-payment of Outstanding Borrowings – Wholly-Owned Subsidiaries: Investment in subsidiaries Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited to enable repayment/pre-payment of their outstanding borrowings (₹30.00 crore).
General Corporate Purposes: Deployment of balance net proceeds towards general corporate purposes, subject to a cap of 25% of Gross Proceeds.

Risk Factors

Dependence on Manufacturing Facilities and Geographic Concentration: The company derives 81.72% of revenue from operations from facilities concentrated in Morbi, Gujarat, exposing it to regional disruptions like natural disasters or regulatory actions.
Revenue Concentration in GVT and Technical Products: With 73.98% of revenue from operations coming from GVT and technical products in FY2026, the company is vulnerable to demand slowdowns in this specific segment.
Geopolitical Conflict in the Middle East: Ongoing conflicts have disrupted the availability and pricing of natural gas and propane, key fuels for operations, and reduced shipping vessel availability for exports.
Franchisee Dependency: The company relies on a franchisee-owned model for its distribution network (66.80% of domestic sales), posing risks related to third-party non-performance or defection.
Raw Material Supply Volatility: The company faces price volatility and supply disruptions for key raw materials such as clays, glaze, and ink, which accounted for 24.56% of total income in FY2026.