Varmora Granito IPO Allotment to Be Finalised Today After 1.6‑Times Subscription
NEWZA Editorial Team•
⚡ Key Financial Takeaways
The IPO was subscribed 1.60 times, with 5.4 crore bids for 3.39 crore shares.
Allotment will be announced on September 25, with refunds and credit to demat accounts on September 28.
Shares are scheduled to list on the BSE and NSE on September 29.
The company will use ₹245 crore of the ₹320 crore fresh issue to repay borrowings, the rest for general corporate purposes.
Grey market trading suggested a listing price of about ₹148.50, a modest premium over the upper IPO price.
💡 Why It Matters
The IPO’s strong subscription indicates robust investor confidence in Varmora Granito’s business model and the broader ceramic tile market. A successful allotment and subsequent listing will provide the company with fresh capital to reduce debt, potentially improving its financial health and enabling further expansion. For investors, the modest grey market premium suggests limited upside potential, but the company’s solid earnings growth could offer long‑term value.
Allotment Process The Varmora Granito IPO, priced in the ₹140‑148 band, is set to complete its allotment on September 25. After the three‑day bidding period ended on September 24, the issue was subscribed 1.60 times. Investors who applied can verify their allotment status through the registrar KFin Technologies, or via the BSE and NSE websites.
Investor Participation During the final day of bidding, retail investors nearly filled the entire retail portion of the issue, while the non‑institutional investor (NII) segment was also close to full subscription. A total of 5.4 crore shares were bid for against 3.39 crore shares offered, indicating strong demand across both retail and NII categories.
Grey Market Pricing Before the allotment, Varmora Granito shares traded in the grey market around the issue price. InvestorGain reported a grey market premium (GMP) of roughly ₹0.50, implying an estimated listing price of about ₹148.50 versus the upper IPO price of ₹148. This translates to a potential premium of about 0.34 %. The GMP had fallen from ₹15 on September 18 to ₹0‑0.50 by September 24, showing a significant decline in speculative demand.
Use of Proceeds The fresh issue raised ₹320 crore, while an offer‑for‑sale (OFS) component of ₹388.02 crore was also part of the IPO. The company plans to allocate ₹245 crore of the fresh issue proceeds to repay or pre‑pay borrowings, with the remaining amount earmarked for general corporate purposes. This debt‑repayment focus aligns with the company’s strategy to strengthen its balance sheet.
Financial Highlights Varmora Granito reported revenue of ₹1,512.46 crore for FY26, up from ₹1,446.03 crore in FY25. Profit after tax rose to ₹55.09 crore from ₹30.77 crore the previous year. The company’s growth in both top‑line and bottom‑line figures underscores its expanding market presence in the ceramic and vitrified tile segment.
Listing and After‑Market Outlook Shares will be listed on the BSE and NSE on September 29. Investors should monitor the actual listing price and early trading activity, as the grey market premium may not fully translate into post‑listing performance. The company’s debt‑repayment plan could also influence investor sentiment in the days following the listing.
🏛️ Background & Context
Varmora Granito, headquartered in Gujarat’s Morbi ceramic cluster, designs and markets glazed and polished vitrified tiles for domestic and international markets. Prior to the public issue, the company secured ₹212.41 crore from anchor investors, including Goldman Sachs, Societe Generale and BNP Paribas, at ₹148 per share.
👁️ What To Watch Next
Key dates to remember: allotment announcement on September 25, refunds and credit to demat accounts on September 28, and listing on September 29. Post‑listing, watch for the actual trading price and any early volatility that may reflect the grey market premium. Additionally, monitor the company’s debt‑repayment progress as it uses a significant portion of the fresh issue proceeds to reduce borrowings.
