Varmora Granito's Rs 708 crore IPO saw a 17% subscription rate by midday on its second day, with retail interest leading at 31%. The company aims to use Rs 245 crore from the fresh issue proceeds to reduce debt. The issue closes on September 24, with institutional support from anchor investors including Goldman Sachs and ICICI Prudential AMC. The stock is set to list on September 29.
Varmora Granito’s public offer saw 17% subscription by midday on its second day of bidding, as retail investors showed cautious interest. The Gujarat-based tile maker is looking to raise Rs 708 crore through this IPO, which remains open for subscriptions until September 24. As of mid-day on September 23, the total bids received were for roughly 5.9 million shares, against the 33.9 million shares available.
Subscription Trends and Institutional Interest
Retail participation accounted for 31% of the reserved quota by the second day, while interest from non-institutional investors was lower at 8%. Before opening to the public, the company raised Rs 212.4 crore through an anchor book allocation at the upper price band of Rs 148 per share. This round saw participation from major institutions like Goldman Sachs, Societe Generale, ICICI Prudential AMC, and Bandhan Mutual Fund, indicating institutional interest in the company’s position within the Morbi tile manufacturing hub.
Debt and Financial Performance
The IPO comprises a fresh issue of shares worth Rs 320 crore and an offer for sale of 2.62 crore shares. A primary goal for the company is debt reduction, with Rs 245 crore from the fresh issue proceeds earmarked to pay down existing borrowings. Investors often focus on debt reduction plans, as lower debt can improve financial health and operational flexibility.
Financially, the company reported revenue of Rs 1,512.46 crore for the financial year 2026, compared to Rs 1,446.03 crore in the previous year. Profit after tax also improved, rising to Rs 55.09 crore in FY26 from Rs 30.77 crore in FY25. The tile industry in India, particularly around Morbi, is known for intense competition and sensitivity to raw material prices and energy costs. The company’s ability to maintain these margins and manage cost volatility will remain an important factor for investors to monitor after it lists.
The public issue closes on September 24. Following the closure, the company will finalize share allotments, and the stock is expected to debut on the National Stock Exchange and the Bombay Stock Exchange on September 29.