Varmora Granito Files DRHP with SEBI for IPO; Plans ₹400 Cr Fresh Issue, OFS by Promoters and Investor

bathware, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking the first official step toward launching its initial public offering (IPO).

The public issue comprises a fresh equity issue of ₹400 crore and an offer for sale (OFS) of 5.24 crore shares by the company’s promoters and Kastura Investments, an existing shareholder. The proposed listing aims to both deleverage the company’s balance sheet and fund general corporate needs.

Use of Proceeds

According to the draft prospectus, ₹320 crore from the fresh issue will be utilised to repay or prepay certain borrowings of Varmora Granito and its wholly owned subsidiaries. The remaining funds will go toward general corporate purposes.

The debt reduction plan is expected to improve the company’s financial flexibility ahead of expansion and scale initiatives in India’s fast-growing construction and renovation sectors.

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Business Overview

Founded in Rajkot, Varmora Granito is a prominent player in the ceramic and vitrified tile market, offering a wide range of products including glazed vitrified, polished vitrified, and ceramic tiles. The company also has a growing presence in the bathware segment.

As of March 31, 2025, the company had a portfolio of over 3,500 SKUs, spanning 20 surface types used in flooring, walls, kitchen slabs, back panels, and facades. In FY25, it introduced marble-look tiles with four new surface finishes developed using in-house integrated stone technology.

Varmora sells through a multi-channel distribution network, including:

• 286 exclusive brand outlets
• Over 2,000 multi-brand retail stores
• B2B channels covering builders, real estate developers, and public sector contracts

Varmora operates nine manufacturing units located in Morbi, Gujarat, a major hub for India’s tile manufacturing ecosystem. This geographic positioning offers cost advantages and easy access to raw materials and export infrastructure.

Lead Managers

The IPO will be managed by JM Financial, Goldman Sachs (India) Securities, and SBI Capital Markets. Post-approval from SEBI, the company is expected to announce its price band and launch timeline in the coming months.

Sector Context

The IPO comes amid strong demand in the home improvement and infrastructure space, with India’s real estate cycle rebounding. Industry analysts suggest that companies with an integrated manufacturing base and brand-led distribution—like Varmora—stand to benefit from rising urban housing and renovation activity.

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