The Indian IPO pipeline is in full throttle. Another mainboard offer has opened for bidding today. Tile manufacturer Varmora Granito’s has begun the subscription process for its Rs 708 crore issue.

Through the fresh component of the issue, the company aims to pay off the borrowings availed by its subsidiaries and utilise a small chunk for general corporate purposes.

Varomora has fixed the share price band for its book-built issue at Rs 140 to Rs 148 per share. Investors can bid in lots of 101 shares and thereafter participate in the bidding process. Ahead of its opening, the company had raised Rs 212.41 crore through its anchor book, with names like ICICI Prudential Mutual Fund, Goldman Sachs, and Bandhan Mutual Fund being the lead participants.

The Gujarat-based company’s Rs 708.02 crore issue comprises a fresh component of 2.16 crore shares aggregating to Rs 320 crore, and an offer for sale portion of Rs 388.02 crore, as Kastura Investments will offload 2.62 crore shares of face value Rs 2 each.

JM Financial, Goldman Sachs, and SBI Capital Markets are the merchant bankers to the issue, while KFin Technologies is the registrar to the offer.

In order to apply for the IPO, investors need to bid for a minimum of one lot comprising 101 shares, equating to an investment of Rs 14,948. The upper limit for retail investors is fixed at 13 lots.

For small high net worth investors, the lower limit is fixed at 14 lots, while the maximum they can bid for is 66 lots, reflecting an investment of Rs 9,86,5698. As for big-HNI, the minimum lots they can bid for is 67.

Trackers reflect a stable trend for the tile company’s grey market premium. As per the latest update, its stock was trading at a GMP of Rs 5 in the unlisted markets, suggesting a listing price of Rs 153, based on the upper end of the share price band.

This indicates gains of nearly 3.4% per share, and a likely profit of Rs 505 per lot. However, bidders must know that GMP is not an official metric to determine the listing price and varies based on market mood and sentiment.

Varmora Granito IPO subscription timeline

The IPO, which opened on September 22, will bid for three days and close its window on September 24. Its share allotment process is expected to be completed by September 25, while bidders are expected to be credited with their shares and requisite refunds by September 28.

Varmora Granito is likely to debut on the NSE and BSE on September 29.