Varmora Granito IPO subscribed 30% so far on Day 3; GMP signals flat listing

According to fresh market updates, The initial public offering (IPO) of Gujarat-based ceramic and vitrified tiles manufacturing firm, Varmora Granito, saw a pick-up in investor interest on the last day of bidding, with the offering receiving 30 percent subscription, as of 10:20 am on September 24, according to NSE data.

The Rs 708.02 crore IPO received bids for 1,02,88,264 shares against 3,39,02,899 shares on offer. Retail market participants led the demand, with their portion subscribed 46 percent, while the non-institutional investor (NII) category was subscribed 19 percent.

In the grey market, the Varmaro Granito shares hinted at a flat stock-exchange debut on the morning of September 24, as per Investorgain. GMP is an unofficial indicator based on activity in the grey market. It can change before stock-exchange debut and does not guarantee the actual stock-exchange debut price or post-stock-exchange debut returns.

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The IPO has a price range of Rs 140-148 per share and comprises a fresh offering of shares worth Rs 320 crore and an offer for sale (OFS) of 2.62 crore shares worth around Rs 388 crore.

The minimum lot size is 101 shares, meaning retail market participants need to invest at least Rs 14,948 at the upper end of the price range.

The IPO is scheduled to close on September 24, with allotment anticipated to be finalised on September 25. The shares are scheduled to list on September 29 on the NSE and BSE.

Ahead of the public offering, Varmora Granito boosted Rs 212.4 crore through its anchor book on September 21.

The firm allotted 1.43 crore equity shares to institutional market participants at Rs 148 per share, the upper end of the IPO price range. The anchor participation included Goldman Sachs, Societe Generale, 360 ONE, India Acorn Fund, Turnaround Opportunities Fund, Bharti AXA Life Insurance, LC Pharos Multi Strategy Fund and BNP Paribas Financial Markets, along with domestic mutual funds.

Among the domestic mutual funds participating in the anchor book were ICICI Prudential AMC, Bandhan Mutual Fund, Motilal Oswal AMC, JM Financial Mutual Fund and Union AMC.

Of the Rs 320 crore fresh offering, Varmora Granito plans to use Rs 245 crore towards repayment of debt. The remaining proceeds will be used for general corporate purposes.

The debt repayment component is as a result a key part of the firm's plan for the fresh capital being boosted through the IPO.

Varmora Granito noted topline of Rs 1,512.46 crore in FY26, compared with Rs 1,446.03 crore in FY25, according to available financial data. Its earnings after tax was noted at Rs 55.09 crore in FY26, compared with Rs 30.77 crore in FY25.

The firm manufactures and markets ceramic and vitrified tiles, including glazed vitrified tiles and polished vitrified tiles. It operates manufacturing facilities in Gujarat's Morbi cluster and has a distribution network covering India and overseas markets.

The IPO is being managed by JM Financial, Goldman Sachs (India) Securities and SBI Capital Markets.