Varmora Granito IPO Day 2 subscription reached 0.17x, with Retail investors leading demand at 0.30x. QIB participation remained flat at 0.00x, reflecting continued lack of institutional interest in the tile manufacturer's issue.

Subscription Status

The Varmora Granito IPO has witnessed a slight improvement in overall subscription figures on the second day of bidding. The total subscription rate increased from 0.11x on Day 1 to 0.17x by the end of Day 2. While Retail investors showed incremental interest, Qualified Institutional Buyers (QIBs) have not subscribed to any portion of the issue, maintaining a 0.00x subscription rate. Non-Institutional Investors (NII) also remain subdued, with small HNIs subscribing at 0.17x and big HNIs at 0.03x.

Subscription Progression

Intra-day Timeline on 23-09-2026

Category-wise Breakdown

Retail investors continue to be the primary source of demand, driving the subscription to 0.30x by the latest update. This represents an increase from 0.27x earlier in the day. Non-Institutional Investors (NII) show minimal activity, with small HNIs ticking up slightly to 0.17x and big HNIs remaining at 0.03x. The Employee quota remains unsubscribed at 0.00x. The absence of QIB bids suggests institutional investors are holding back, potentially awaiting better valuation clarity or market stability before committing capital.

Offer Details

The Varmora Granito IPO is priced between ₹140.00000 and ₹148.00000 per share. The minimum bid quantity is set at 101 shares. The issue size ranges from ₹14,140 crore to ₹500,000 crore based on the price band. The IPO opened for subscription on 2026-09-22 and will close on 2026-09-24 at 17:00:00.

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). Varmora distributes products through a network of 305 EBOs and 2,758 MBOs across 988 cities in India, with exports to over 100 countries.

Financial Highlights

The company reported revenue from operations of ₹15,124.64 million in FY2026. Below are the key consolidated financial metrics:

Objects of the Issue

The company intends to utilize the net proceeds 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 repaying their borrowings, improving the consolidated debt-equity ratio.
• General Corporate Purposes: Balance net proceeds towards general corporate purposes, including growth opportunities, brand building, marketing, and strategic initiatives, subject to a cap of 25% of Gross Proceeds.

Risk Factors

Key risks disclosed include:

• Geographic Concentration: 81.72% of revenue comes from in-house manufacturing in Morbi, Gujarat, making the company vulnerable to local disruptions like natural disasters or regulatory actions.
• Revenue Concentration: 73.98% of revenue is derived from GVT and technical products, exposing the company to demand slowdowns in this specific segment.
• Franchisee Dependency: 66.80% of domestic sales are through franchisees (EBOs and MBOs), posing risks related to non-performance or defection.
• Fuel Cost Exposure: Power and fuel expenses account for 21.06% of total income, with significant exposure to natural gas price volatility.

What's Next

The Varmora Granito IPO closes for subscription on 2026-09-24. Allotment is scheduled for 2026-09-25, and the shares are expected to list on stock exchanges on 2026-09-29.