Varmora Granito IPO Day 3: Subscribed 0.38x; Retail leads at 0.58x, QIB at 0.15x
- Varmora Granito IPO closed with a cumulative subscription of 0.38x.
- Retail investors led the demand with a subscription rate of 0.58x.
- QIB participation remained muted at 0.15x of their allotted quota.
- Allotment is scheduled for September 25, 2026, with listing on September 29, 2026.
*this image is generated using AI for illustrative purposes only.
Varmora Granito IPO closed its subscription on September 24, 2026, with a final overall subscription of 0.38x. Retail investors led demand at 0.58x, while QIBs subscribed to just 0.15x of their quota.
Subscription Status
The issue witnessed a gradual increase in demand over the three-day period but failed to achieve full subscription. The total subscription rate rose from 0.11x on Day 1 to 0.38x by the close of Day 3. The table below details the day-wise progression of the subscription across all investor categories.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 22-09-2026 | 0.00x | 0.12x | 0.02x | 0.20x | 0.11x |
| Day 2 | 23-09-2026 | 0.11x | 0.24x | 0.14x | 0.40x | 0.27x |
| Day 3 | 24-09-2026 | 0.15x | 0.34x | 0.18x | 0.58x | 0.38x |
Intra-day Timeline
On the final day, retail interest picked up pace after 11:15 AM, jumping from 0.50x to 0.58x by 12:15 PM. The total subscription also ticked up from 0.34x to 0.38x during this hour.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.14x | 0.31x | 0.50x | 0.34x |
| 12:15 | 0.15x | 0.34x | 0.58x | 0.38x |
Category-wise Breakdown
Retail investors demonstrated the highest level of participation, covering nearly 60% of their allotted portion. The Non-Institutional Investors (NII) category showed moderate interest, split between small and big HNIs. Institutional demand was notably weak, with QIBs subscribing to just 0.15x of their quota.
- Retail: 0.58x
- NII (Small HNI): 0.34x
- NII (Big HNI): 0.18x
- QIB: 0.15x
- 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.
| Particulars | FY2026 (₹ Cr) | FY2025 (₹ Cr) | FY2024 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 1,512.46 | 1,446.03 | 1,435.48 |
| Total Revenue | 1,562.53 | 1,492.68 | 1,472.58 |
| Profit Before Tax | 76.62 | 37.65 | 63.04 |
| Total Profit | 55.09 | 30.77 | 44.94 |
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.
How might the severe lack of QIB interest (0.15x) influence the stock's price stability and volatility during its debut on September 29?
Given the significant under-subscription, will Varmora Granito need to revise its capital allocation strategy or delay planned debt repayments due to reduced proceeds?
What impact will the heavy reliance on retail investors for subscription have on the company's future corporate governance and shareholder structure?
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
