Varmora Granito opens ₹708 crore IPO, with fresh proceeds focused on debt reduction

The Morbi-based tile maker’s IPO comprises a ₹320 crore fresh issue and ₹388.02 crore offer for sale. About ₹245 crore of fresh proceeds is earmarked for debt repayment. Varmora sells through 305 exclusive outlets and 2,758 multi-brand outlets.

— Source publishedTue, 22 Sept, 2026, 07:00 IST·First seen Tue, 22 Sept, 2026, 08:11 IST·Source NDTV Profit

What happened

Indian tile maker Varmora Granito opened its Rs 708.02 crore IPO, with fresh proceeds largely earmarked for debt reduction. The company operates eight Morbi

Key facts

  • IPO size: Rs 708.02 crore
  • Fresh issue: Rs 320 crore
  • Offer for sale: Rs 388.02 crore
  • Price band: Rs 140-148 per share
  • Debt repayment allocation: about Rs 245 crore
  • Exclusive brand outlets: 305
  • Multi-brand outlets: 2,758
  • FY26 revenue: Rs 1,562.53 crore
  • FY26 PAT: Rs 55.09 crore
  • FY26 EBITDA: Rs 221.56 crore
  • FY26 borrowings: Rs 357.95 crore
  • GMP: Rs 9 per share

Why this matters

Varmora’s public listing creates a better-capitalized, more transparent tile-sector competitor and potential strategic partner across its sizable Morbi-led distribution network.

What to watch

  • Final IPO subscription mix, especially qualified institutional buyer participation and the listing premium or discount.
  • Actual debt repaid, residual net debt, interest-cost reduction and operating cash-flow conversion after the issue.
  • Same-store sales and outlet additions across exclusive and multi-brand channels.
  • Tile realizations, dealer incentives and gross-margin trends amid Morbi capacity competition.
  • Natural-gas, power, freight and raw-material cost movements.
  • Residential construction, housing launches, renovation demand and export-market conditions.
  • Prioritize repayment of high-cost borrowings soon after listing and highlight lower net-debt metrics in quarterly disclosures.
  • Increase dealer-level inventory availability and credit support in high-growth housing and renovation markets.
  • Use improved public-market visibility to recruit additional exclusive franchisees and deepen multi-brand outlet penetration.
  • Emphasize premium, large-format and differentiated tile categories to protect margins from commodity-grade pricing pressure.
  • Benchmark post-listing valuation and operating performance against organized peers such as Kajaria Ceramics, Somany Ceramics and Asian Granito.