Varmora Granito Files IPO Papers With Sebi; Eyes ₹400 Cr Via Fresh Issue

Tiles and bathware maker Varmora Granito Ltd has filed draft papers with the markets regulator Sebi seeking its go-ahead to mobilise funds through an Initial Public Offering (IPO).

The proposed IPO is a combination of fresh issue of shares worth ₹400 crore and Offer for Sale (OFS) of 5.24 crore equity shares, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

Those selling shares under the OFS are promoters -- Parsotambhai Jivrajbhai Patel, Ramanbhai Jivrajbhai Varmora, and Vallabhbhai Jivrajbhai Varmora and investor-- Katsura Investments.

The Rajkot-based company plans to use ₹320 crore to repay its debt as well as its subsidiaries -- Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles -- and a portion would be used for general corporate purposes.

Varmora Granito offers a wide range of high-quality, durable, and stylish tiles, including glazed vitrified, polished vitrified, and ceramic tiles.

As of March 31, 2025, its portfolio featured over 3,500 SKUs across 20 surface types for uses such as flooring, walls, back panels, facades, and kitchen slabs.

In FY 2025, it introduced marble-look products in four surface finishes using integrated stone technology.

Its products are sold through a multi-channel network, including 286 exclusive brand outlets, over 2,000 multi-brand outlets, and B2B channels such as builders, contractors, developers, and government projects. The company has nine manufacturing facilities in the Morbi cluster in Gujarat.

According to a report by Technopak, the Indian domestic tiles market has witnessed significant growth over the past years. Valued at approximately ₹36,000 crore in Fiscal 2019, the market expanded to ₹53,100 crore by Fiscal 2025, growing at a CAGR of 6.7%. It is further projected to grow to ₹76,900 by Fiscal 2029, representing a CAGR of 9.7% from Fiscals 2025 to 2029.

JM Financial, Goldman Sachs (India) Securities and SBI Capital Markets have been appointed as lead managers to manage Varmora Granito's maiden public issue.