Varmora Granito IPO

Varmora Granito IPO is a 100% book-built offer comprising a fresh issue of equity shares aggregating up to ₹400 crore and an offer for sale of up to 5,24,35,268 equity shares by the selling shareholders. The company filed their DRHP with SEBI on August 7, 2025.

While the exact price band, issue opening and closing dates and expected listing dates are yet to be announced, the shares are supposed to be listed on the BSE and NSE. The book running lead managers (BLRMs) appointed to manage the issue include JM Financial Ltd., Goldman Sachs (India) Securities Private Ltd. and SBI Capital Markets Ltd. KFin Technologies Ltd. will serve as the registrar for the Varmora Granito IPO.

Company Background

Varmora Granito Ltd. was formed in the year 2003 as a private limited company in the state of Gujarat. The company has grown in leaps and bounds and is currently one of the leading Indian companies in the production of high-quality building materials over the last 20+ years.

The company deals with a wide range of products, such as more than 3,500 SKUs of ceramic and vitrified tiles, along with bathware, sanitaryware and tile adhesives. The company operates 9 manufacturing units in the Morbi industrial area and caters to both domestic and overseas markets in 100 countries. It was recently converted into a public limited company in May 2025.

They also outline clear expansion plans; they have entered into a term sheet to acquire a 51% stake in Allemby Ceramics Private Limited to establish a new greenfield ceramic tiles manufacturing facility in Tezpur, Assam, which is projected to have an installed capacity of approximately 6.40 million square meters per annum.

Operations & Product Range

Varmora Granito Ltd. follows a hybrid business model, which includes robust in-house manufacturing capabilities as well as the procurement of standard products from third-party contract manufacturers. The company's product offerings are quite varied, with more than 3,500 stock-keeping units (SKUs) in 20 different surface types in the tile segment. These include glazed vitrified tiles (GVT), polished vitrified tiles (PVT) and ceramic tiles, which serve various purposes like flooring, walling and façades.

In addition, they also offer more than 500 SKUs in the bathware segment, including sanitaryware and faucets, as well as tile adhesives. The target market includes consumers in the residential and commercial real estate and infrastructure sectors, reaching them through B2C and B2B sales.

Facilities & Capacity

Varmora Granito Ltd.’s operations are anchored by 9 strategically located manufacturing facilities situated within the well-known Morbi cluster in Gujarat. As of March 31, 2025, Varmora Granito's installed capacity for tiles stood at 43.80 million square meters. Furthermore, the sanitaryware facility holds an installed capacity of 8.58 lakh pieces and the ceramic clay production capacity sits at 1.18 lakh metric tonnes.

Brands & Market Presence

Varmora Granito Ltd. mainly markets its products under the company's flagship brand name "Varmora," which has a very strong presence in the domestic as well as international markets. The company has a well-balanced market presence, with domestic sales contributing 78.69% to the overall sales of the products, while exports make up the remaining 21.31%, which is distributed to over 100 countries across the world as of Fiscal 2025.

In recognition of its market position, Varmora Granito was recently awarded the ‘Best Realty Brand’ in the building material segment at the Best Realty Brands Awards 2025.

Revenue Streams & Business Model

The main source of revenue for Varmora Granito Ltd. is the tile business, which accounted for 88.38% of the total revenue generated from operations in Fiscal 2025. The tile business is further divided into Glazed Vitrified Tiles (GVT), which constitute the majority of the revenue generated. This is a result of the company's focus on higher-realization products. Bathware accounts for 8.90% of the total revenue generated from operations, while adhesives and other products account for the remaining revenue.

The company has a well-diversified domestic business, which is mainly driven by B2C retail sales, accounting for 68.82% of the total domestic sales in Fiscal 2025, while B2B institutional sales accounted for 31.18%. The company also generates revenue from exports, ensuring that the business model is not dependent on a single market.

Management & Shareholding

Varmora Granito Ltd. is led by its promoters, Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel. Before the Varmora Granito IPO, the promoters and the promoter group collectively held a 51.52% stake in the company. An affiliate of the Carlyle Group, Katsura Investments, acts as an investor selling shareholder with a 36.42% pre-offer stake. The exact post-IPO shareholding structure will be determined upon the finalization of the issue allotment.

Board & Key Management

The strategic decision-making and governance of Varmora Granito Ltd. are overseen by a balanced and experienced Board of Directors. Bhavesh Vallabhdas Varmora (Chairman and Managing Director) guides the company, bringing substantial operational and industry experience. He is supported by Executive Directors Hiren R Varmora and Pramodkumar Parsotambhai Patel. The board is further strengthened by the presence of Independent Directors, including Suryanarayanan Sivaramakrishnan, Chandubhai Virani, Sandhya Maulik Patel, Vivek Vikram Singh and Shital Bharatkumar Badshah, ensuring adherence to corporate governance standards.