Varmora Granito IPO Review: Brokerages split over valuation, growth outlook

VarmoraGranito’s ₹708-crore IPO opened for bidding on Tuesday and received a muted response from investors. Notably, the issue has also drawn mixed views from brokerages. VarmoraGranito manufactures and sells tiles, bathware, and adhesives. Its core product categories include glazed vitrified tiles, polished vitrified tiles, ceramic tiles, sanitaryware, faucets, and tile adhesives. The company operates eight in-house manufacturing facilities situated in Morbi, Gujarat, and engages contract manufacturers to produce standard volume items

Brokerage view

Swastika

The brokerage assigned a ‘Neutral’ rating to the stock, noting that despite the company’s balance sheet health improving significantly post-IPO, the asking valuation leaves limited margin of safety for short-term listing gains. “Long-term value depends on sustained execution in the premium GVT market and raw material cost stability,” the brokerage said.

Swastika added that the company’s revenue is primarily generated from the sale of tiles, particularly glazed vitrified tiles and technical products featuring specialised homogeneous body formulations and digital printing surface engineering. “High revenue concentration in glazed vitrified tiles exposes the business to category slowdowns,” it added.

The brokerage also added that the company is susceptible to international trade tariffs, sanctions, and foreign exchange risks.

Ventura

The brokerage firm had a bullish stance as it assigned a ‘Subscribe’ rating to the company, noting that it has expanded from a traditional tile manufacturer into a broader branded building-material platform, supported by product premiumisation, distribution expansion and increasing manufacturing integration. Revenue from operations stood at approximately ₹1,512.5 crore in FY26.

“The improvement in profitability reflects increasing operating leverage, higher in-house manufacturing and an improving product mix,” Ventura said.

The brokerage added that the company’s distribution-led business model, supported by exclusive and multi-brand outlets, provides the company with a broad presence across retail and project-driven markets.

IPO Details

VarmoraGranito Limited IPO is a book-built issue of ₹708 crore. The issue comprises a fresh issue and offer for sale of 4.78 crore shares aggregating to a fresh issue of ₹320 crore and an offer for sale of ₹388 crore.

The bidding for the VarmoraGranito IPO opened on September 22, 2026, and will close on September 24, 2026. The allotment is expected to be finalised on September 25, 2026.

The IPO has a price band of ₹140 to ₹148 per share. The lot size for an application is 101 shares, meaning retail investors need to invest a minimum of ₹14,850 for one lot, based on the upper end of the price band.

IPO bid details

VarmoraGranito IPO was subscribed 0.08 times. The public issue was subscribed 0.14 times in the retail category, 0.00 times in QIB (Ex Anchor), and 0.03 times in the NII category by September 22, 2026, 1:20 PM

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.