Varmora Granito Ltd IPO
Status: Closed
Overview
IPO date
22 Sept 2026 to 24 Sept 2026
Face value
₹ 2 per share
Price
₹ 140 to ₹148 per share
Issue Size
47,839,255 shares
(aggregating up to ₹ 708.02 Cr)
(aggregating up to ₹ 708.02 Cr)
Allotment Date
25 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Ceramic Products
Unlock Stock of the Month
T&C*
Strengths vs Risks of Varmora Granito Ltd
Know the pros & cons
Strengths
- Established player operating in the tile industry in India in a large attractive market.
- Comprehensive premium product portfolio.
- Customer centric innovation led approach resulting in multiple new product launches.
- Well diversified pan-India distribution network focused on EBOs that strengthen our brand recall.
- Strategically located and technologically advanced in-house manufacturing to maintain control over quality and supply chain.
- Entrepreneurial founder led management team, independent Board with strong focus on sustainability.
Risks
- We are dependent on our manufacturing facilities for a significant portion of our revenues (81.72% of our total revenue from operations in Fiscal 2026). Further, certain of our products are produced at dedicated manufacturing facilities. Any delay in production at, or shutdown of, or any interruption in these manufacturing facilities may significantly and adversely affect our business, financial condition, cash flows and results of operations.
- We derive a substantial portion of our revenue from the sale of glazed vitrified tiles ("GVT") and technical products (73.98% of our total revenue from operations in Fiscal 2026), and any slowdown in the demand for GVT and technical products could have a material adverse effect on our business, financial condition, cash flows and results of operations.
- All the company's revenue is attributable to manufacturing facilities (owned and operated by the Company or Subsidiaries, or third-party contract manufacturers) situated in Morbi, Gujarat, India. Any disruption in the Morbi region, may significantly and adversely affect its business, financial condition, cash flows and results of operations.
- The company has an extensive retail distribution network and derives a significant portion of its revenue from operations from the company B2C retail chain (comprising exclusive brand outlets ("EBOs") and multi brand outlets ("MBOs")) (accounting for 66.80% of its total domestic sales in Fiscal 2026). The company operates all its EBOs and MBOs through franchisees and any non-performance by the company franchisees may adversely affect its business, results of operations and financial condition.
- The company's Subsidiaries, Associates and Joint Ventures (some of which are also Group Companies) have common pursuits vis-à-vis the Company and are in a similar line of business as the company, which may lead to a conflict of interest in the future that in turn may adversely impact the company's business, financial condition, cash flows and results of operations.
- The company may undertake strategic acquisitions or investments, which may prove to be difficult to integrate and manage or may not be successful.
- The company operations are subject to volatility in the supply and pricing of raw materials and packing materials. The company is also dependent on its top suppliers for the supply for certain raw materials (top 10 suppliers contributed to 8.10% of the company's total expenses in Fiscal 2026). Any loss of suppliers or interruptions in the timely delivery of supplies or price escalations could have an adverse impact on its business, financial condition, cash flows and results of operations.
- The company derives a portion of its revenue from operations from outside India (revenue from contracts with customers from outside India was 21.11% of the company Sale of Products in Fiscal 2026) which exposes it to risks inherent to operations in these foreign jurisdictions. The company's global operations expose it to risks such as compliance with local laws, and any failures to comply with applicable laws or regulations could lead to civil, administrative or regulatory proceedings which could adversely affect the company's business, results of operations and financial condition.
- The company operates in highly competitive markets in each of its product categories and an inability to compete effectively may adversely affect the company's business, financial condition, cash flows and results of operations.
- The Offer Price of the company's Equity Shares, market capitalization to revenue from operations ratio, market capitalization to tangible assets ratio and EV to EBITDA before exceptional items (EBITDA) ratio may not be indicative of the trading price of the Equity Shares upon listing on the Stock Exchanges subsequent to the Offer and, as a result, you may lose a significant part or all of your investment.
- A portion of the company's revenue is generated from products manufactured by third-party contract manufacturers (17.60% of its total revenue from operations in Fiscal 2026) that are engaged with the company on a non-exclusive basis. Any disruption or non-performance by these third parties may affect its ability to obtain sufficient or desired quantities of products in a timely manner or at acceptable prices, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operates its business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has entered into and may continue to enters into related party transactions. Failures to ensure that such related party transactions are entered into on an "arm's length" basis could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has significant power and fuel requirements and any disruption to power or fuel sources could increase its production costs and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has certain contingent liabilities that have not been provided for in its Restated Consolidated Financial Information, which if they materialize, may adversely affect the company's financial condition.
- If the company is unable to maintain and enhance the value and reputation of its brand and/or counter any negative publicity, the company's business, financial condition, cash flows and results of operations could be materially adversely affected.
- The company has recently commenced operations of manufacturing facility in Tezpur, Assam, through its Joint Venture, Allemby Ceramics Private Limited ("Allemby"), which may expose it to operational, ramp-up, integration and utilization risks. Further, the company has no prior experience of operating in Tezpur, Assam.
- The ongoing geopolitical conflict involving the United States, Israel and Iran has adversely affected, and may continue to adversely affect, the company's business, results of operations, financial condition, cash flows and prospects.
- A portion of the Net Proceeds is proposed to be utilized for repayment or pre-payment, in full or part, all or a portion of certain loans availed by the Company and Subsidiary namely Varmora Sanitarywares Private Limited (formerly known as Varmora Sanitarywares LLP), from State Bank of India, an affiliate of one of the BRLMs to the Offer.
- The company's success depends in large part upon its Promoters, Directors, Key Managerial Personnel, Senior Management and certain other employees and the company's inability to attract, train and retain such persons could adversely affect its business, financial condition, cash flows and results of operations.
- The company operations are dependent on its research and development activities to introduce new products in line with emerging industry trends, customer preferences and upcoming technologies. Any inability to do so could adversely affect the company's business, financial condition, cash flows and results of operations.
- Its business is capital intensive and the company has incurred indebtedness. Further, its lenders have created charges over the company's movable and immovable properties in respect of finance availed by the company. Its inability to obtain further financing or meet the company's obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations.
- There are outstanding litigation against the Company, Directors, Promoters, Subsidiaries, Key Managerial Personnel, Senior Management and Group Companies. An adverse outcome in any of these proceedings may affect the company's reputation and standing and impact its future business and could have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company's audit reports include certain observations in the annexure to the report prescribed under the Companies (Auditor's Report) Order, 2020 for Fiscals 2026, 2025 and 2024. There can be no assurance that its audit reports for any future periods or financial years will not contain qualifications, matters of emphasis or other observations, including any observations that may have an effect on its financial statements and which could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company faces risks such as cost overruns and delays in expanding and commissioning new manufacturing facilities. Failures to manage these risks could delay the commissioning of the company's upcoming manufacturing facilities and adversely impact its business, prospects, results of operations, cash flows and financial condition.
- Any non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in the company's manufacturing facilities, which could adversely impact on its business, financial condition, cash flows and results of operations.
- Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- Certain of the company's products are produced at dedicated manufacturing facilities. Any delay in production at, or shutdown of, or any interruption in these manufacturing facilities may significantly and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company depends on third party transportation providers for the delivery of raw materials and packing materials to its manufacturing facilities. The company has not entered into any formal contracts with its transport providers and any failures on the part of such service providers to meet their obligations could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company is subject to governmental regulation in India and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and the company failures to comply may result in enforcements, recalls, and other adverse actions.
- A significant number of the company's EBOs are present in four states of India (170 out of its 305 EBOs (representing 55.74%) were present in Uttar Pradesh, Rajasthan, Haryana and Gujarat as of March 31, 2026). Any adverse development in these regions may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has outstanding dues from its overseas customers from time to time. There can be no assurance that such dues will be realized by the company within the requisite timelines under FEMA.
- Any inability to maintain or failures in the company's quality control processes may result in delays, modifications or cancellations of orders placed by its customers, damage the company's reputation and/ or result in legal proceedings, any of which may adversely affect its business, financial condition, cash flows and results of operations.
- The company depends on its partnerships with various architects, builders and contractors and government agencies for sales under the company's B2B channel. Any loss of such relationships may adversely affect its business, financial condition, cash flows, results of operations and prospects.
- The company's inability to collect receivables from its customers or default or delays in payment by them could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company operations requires a significant amount of working capital and an inability to meet its working capital requirements may adversely affect the company's business, financial condition, cash flows and results of operations.
- Failures to accurately forecast customer demand could lead to excess inventories or inventory shortages, which could result in decreased operating margins and reduced cash flows and adversely affect to the company's business, financial condition, cash flows and results of operations.
- The company is significantly dependent on the performance of the real estate and infrastructure industries where its products are utilized. Any negative trends in these industries could adversely affect demand for its products, the company's costs of doing business and its business, financial condition, cash flows and results of operations.
- The activities carried out at the company's manufacturing facilities may result in injury to persons or property, which could result in a suspension of operations and/or the imposition of civil or criminal liabilities. These may adversely affect the company's business, financial condition, cash flows and results of operations.
- Any significant disruptions of information technology systems or breaches of data security could adversely affect the company's business, financial condition, cash flows and results of operations.
- Information relating to the historical capacity of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary.
- The company is exposed to the risk from sanctions laws or other similar regulations, and failures to comply with such laws could potentially have an adverse effect on the company's business, financial condition, cash flows, results of operations and prospects.
- Improper storage, processing and handling of raw materials and finished products may cause damage to the company's inventory leading to an adverse effect on its business, financial condition, cash flows and results of operations.
- The company may be unable to adequately obtain, maintain, protect and enforce its intellectual property rights. The company may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business and operations.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in the Company other than remuneration and reimbursement of expenses.
- The company's Corporate Office and two manufacturing facilities are situated in a building/on land that are not owned by the company. In the event that its lose such rights or are required to renegotiate arrangements for such rights, the company's business, financial condition, cash flows and results of operations may be adversely affected.
- The company's insurance coverage may not be sufficient or may not adequately protect it against risks and unexpected events, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- If the company fails to keep its technical knowledge and process know-how confidential, the company may suffer a loss of its competitive advantage.
- The company currently avail benefits under certain export promotion schemes. Any failures in meeting the obligations under such schemes, may result in adversely affecting the company's business, financial condition, cash flows and results of operations.
- The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategies could have an adverse effect on its business, financial condition, cash flows and results of operations.
- Any downgrade of the company's credit ratings may restrict its access to capital and thereby adversely affect the company's business, financial condition, cash flows and results of operations.
- An inability to establish and maintain effective internal controls could lead to an adverse effect on the company's business, financial condition, cash flows and results of operations.
- Increased losses due to fraud, employee misconduct, employee negligence, theft or similar incidents may have a negative impact on the company's business, financial condition, cash flows and results of operations.
- Certain sections of this Red Herring Prospectus disclose information from the Technopak Report which has been prepared exclusively for the Offer and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry the company operates.
- The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which may be beyond the company's control. Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The company's Promoters and Promoter Group will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise significant influence over the company.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends on the company's earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements and the company may not be able to pay dividends in future.
- The Company will not receive any proceeds from the Offer for Sale portion.
Varmora Granito Ltd Peer Comparison
Understand the company’s industry standing
Varmora Granito Limited
Kajaria Ceramics Limited
Somany Ceramics Limited
Face Value
2
1
2
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1512.464
4830.36
2789.84
EPS-Basis
3.08
30.48
19.8
EPS-Diluted
3.05
30.44
19.76
NAV Per Share
39.52
191.11
202.11
P/E-Basic EPS
48.52
40.27
28.55
P/E-Diluted EPS
---
---
---
RONW(%)
7.79
15.89
8.79
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Varmora Granito Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
IPO reads
Stay updated with the latest IPO developments
February 27, 2025 | 5 min read
₹50.11 Cr Balaji Phosphates IPO Opens Feb 28. Issue Details and SWOT AnalysisRead More
February 25, 2025 | 5 min read
Tata Capital Board Approves ₹15,000 Cr Plus Mega IPO; Tata Investment Shares Soar 8%Read More
February 18, 2025 | 5 min read
Busy Week Ahead: 2 SME IPOs and 9 Market Listings – Get the Complete Details HereRead More
October 25, 2024 | 5 min read
Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!Read More
October 22, 2024 | 5 min read
Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!Read More
October 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
September 6, 2024 | 5 min read
Bajaj Housing Finance IPO: All You Need to KnowRead MoreOctober 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
August 26, 2024 | 5 min read
Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue LaunchRead MoreMore on IPOs
Navigate your way to other IPO resources
Latest videos on IPOs
IPO highlights & details!
FAQs on IPO
Get answers to all your questions here!
The IPO opens on 22 Sept 2026 & closes on 24 Sept 2026.
Varmora Granito Limited was originally incorporated as 'Varmora Granito Private Limited' dated November 18, 2003, at the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. The name of Company was changed to 'Varmora Granito Limited' and a fresh certificate of Incorporation was issued on May 14, 2025, by the Registrar of Companies, Gujarat at Ahmedabad.
The Company offer a diverse range of products comprising high-quality, durable and aesthetic tiles, including glazed vitrified tiles, polished vitrified tiles and ceramic tiles. It sell products through a multi-channel distribution network comprising business-to-consumer retail channels, which include 286 exclusive brand outlets and over 2,000 multi brand outlets, and business-to-business channels including builders, contractors, developers and government empanelment.
The Company Introduced vitrified tiles in 2004, launched digitally printed wall tiles in 2010, it commenced production of double charge tiles in 2012, launched sanitaryware business in 2014, introduced high gloss and rocker in 2017 and kitchen slabs (80x260) in 2020. It established 2 greenfield plants in Morbi in FY 2024. In addition to product innovation and premiumization, Company launched marble products across four surfaces in FY25.
The Company issued 47,839,255 equity shares having the face value of Rs 2 each aggregating to Rs 708 crore by way of IPO. The IPO comprise a fresh issue of 21,621,621 equity shares amounting to Rs 320 crore and the offer for sale of 26,217,634 equity shares amounting to Rs 388 crore on September 24, 2026.
The Company acquired the business of Allemby Ceramics Pvt Ltd in FY 2026.
.
Varmora Granito Ltd IPO will close on 24 Sept 2026.
- Established player operating in the tile industry in India in a large attractive market.
- Comprehensive premium product portfolio.
- Customer centric innovation led approach resulting in multiple new product launches.
- Well diversified pan-India distribution network focused on EBOs that strengthen our brand recall.
- Strategically located and technologically advanced in-house manufacturing to maintain control over quality and supply chain.
- Entrepreneurial founder led management team, independent Board with strong focus on sustainability.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Bhavesh Vallabhdas Varmora | 19351425 | 9.47 | 19351425 | 8.56 |
| 2 | Hiren R Varmora | 19117155 | 9.35 | 19117155 | 8.46 |
| 3 | Pramodkumar Parsotambhai Patel | 13416450 | 6.56 | 13416450 | 5.94 |
| 4 | Ramanbhai Jivrajbhai Varmora | 13168680 | 6.44 | 13168680 | 5.83 |
| 5 | Vallabhbhai Jivrajbhai Varmor | 10313355 | 5.05 | 10313355 | 4.56 |
| 6 | Bharatbhai Vallabhdas Varmor | 9631715 | 4.71 | 9631715 | 4.26 |
| 7 | Manishkumar Vallabhbhai Varm | 9132145 | 4.47 | 9132145 | 4.04 |
| 8 | Parsotambhai Jivrajbhai Patel | 6381300 | 3.12 | 6381300 | 2.82 |
| 9 | Prafulbhai Parsotambhai Varm | 3355815 | 1.64 | 3355815 | 1.48 |
| 10 | Varmora International | 2443940 | 1.19 | 2443940 | 1.08 |
- We are dependent on our manufacturing facilities for a significant portion of our revenues (81.72% of our total revenue from operations in Fiscal 2026). Further, certain of our products are produced at dedicated manufacturing facilities. Any delay in production at, or shutdown of, or any interruption in these manufacturing facilities may significantly and adversely affect our business, financial condition, cash flows and results of operations.
- We derive a substantial portion of our revenue from the sale of glazed vitrified tiles ("GVT") and technical products (73.98% of our total revenue from operations in Fiscal 2026), and any slowdown in the demand for GVT and technical products could have a material adverse effect on our business, financial condition, cash flows and results of operations.
- All the company's revenue is attributable to manufacturing facilities (owned and operated by the Company or Subsidiaries, or third-party contract manufacturers) situated in Morbi, Gujarat, India. Any disruption in the Morbi region, may significantly and adversely affect its business, financial condition, cash flows and results of operations.
- The company has an extensive retail distribution network and derives a significant portion of its revenue from operations from the company B2C retail chain (comprising exclusive brand outlets ("EBOs") and multi brand outlets ("MBOs")) (accounting for 66.80% of its total domestic sales in Fiscal 2026). The company operates all its EBOs and MBOs through franchisees and any non-performance by the company franchisees may adversely affect its business, results of operations and financial condition.
- The company's Subsidiaries, Associates and Joint Ventures (some of which are also Group Companies) have common pursuits vis-à-vis the Company and are in a similar line of business as the company, which may lead to a conflict of interest in the future that in turn may adversely impact the company's business, financial condition, cash flows and results of operations.
- The company may undertake strategic acquisitions or investments, which may prove to be difficult to integrate and manage or may not be successful.
- The company operations are subject to volatility in the supply and pricing of raw materials and packing materials. The company is also dependent on its top suppliers for the supply for certain raw materials (top 10 suppliers contributed to 8.10% of the company's total expenses in Fiscal 2026). Any loss of suppliers or interruptions in the timely delivery of supplies or price escalations could have an adverse impact on its business, financial condition, cash flows and results of operations.
- The company derives a portion of its revenue from operations from outside India (revenue from contracts with customers from outside India was 21.11% of the company Sale of Products in Fiscal 2026) which exposes it to risks inherent to operations in these foreign jurisdictions. The company's global operations expose it to risks such as compliance with local laws, and any failures to comply with applicable laws or regulations could lead to civil, administrative or regulatory proceedings which could adversely affect the company's business, results of operations and financial condition.
- The company operates in highly competitive markets in each of its product categories and an inability to compete effectively may adversely affect the company's business, financial condition, cash flows and results of operations.
- The Offer Price of the company's Equity Shares, market capitalization to revenue from operations ratio, market capitalization to tangible assets ratio and EV to EBITDA before exceptional items (EBITDA) ratio may not be indicative of the trading price of the Equity Shares upon listing on the Stock Exchanges subsequent to the Offer and, as a result, you may lose a significant part or all of your investment.
- A portion of the company's revenue is generated from products manufactured by third-party contract manufacturers (17.60% of its total revenue from operations in Fiscal 2026) that are engaged with the company on a non-exclusive basis. Any disruption or non-performance by these third parties may affect its ability to obtain sufficient or desired quantities of products in a timely manner or at acceptable prices, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operates its business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has entered into and may continue to enters into related party transactions. Failures to ensure that such related party transactions are entered into on an "arm's length" basis could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has significant power and fuel requirements and any disruption to power or fuel sources could increase its production costs and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has certain contingent liabilities that have not been provided for in its Restated Consolidated Financial Information, which if they materialize, may adversely affect the company's financial condition.
- If the company is unable to maintain and enhance the value and reputation of its brand and/or counter any negative publicity, the company's business, financial condition, cash flows and results of operations could be materially adversely affected.
- The company has recently commenced operations of manufacturing facility in Tezpur, Assam, through its Joint Venture, Allemby Ceramics Private Limited ("Allemby"), which may expose it to operational, ramp-up, integration and utilization risks. Further, the company has no prior experience of operating in Tezpur, Assam.
- The ongoing geopolitical conflict involving the United States, Israel and Iran has adversely affected, and may continue to adversely affect, the company's business, results of operations, financial condition, cash flows and prospects.
- A portion of the Net Proceeds is proposed to be utilized for repayment or pre-payment, in full or part, all or a portion of certain loans availed by the Company and Subsidiary namely Varmora Sanitarywares Private Limited (formerly known as Varmora Sanitarywares LLP), from State Bank of India, an affiliate of one of the BRLMs to the Offer.
- The company's success depends in large part upon its Promoters, Directors, Key Managerial Personnel, Senior Management and certain other employees and the company's inability to attract, train and retain such persons could adversely affect its business, financial condition, cash flows and results of operations.
- The company operations are dependent on its research and development activities to introduce new products in line with emerging industry trends, customer preferences and upcoming technologies. Any inability to do so could adversely affect the company's business, financial condition, cash flows and results of operations.
- Its business is capital intensive and the company has incurred indebtedness. Further, its lenders have created charges over the company's movable and immovable properties in respect of finance availed by the company. Its inability to obtain further financing or meet the company's obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations.
- There are outstanding litigation against the Company, Directors, Promoters, Subsidiaries, Key Managerial Personnel, Senior Management and Group Companies. An adverse outcome in any of these proceedings may affect the company's reputation and standing and impact its future business and could have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company's audit reports include certain observations in the annexure to the report prescribed under the Companies (Auditor's Report) Order, 2020 for Fiscals 2026, 2025 and 2024. There can be no assurance that its audit reports for any future periods or financial years will not contain qualifications, matters of emphasis or other observations, including any observations that may have an effect on its financial statements and which could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company faces risks such as cost overruns and delays in expanding and commissioning new manufacturing facilities. Failures to manage these risks could delay the commissioning of the company's upcoming manufacturing facilities and adversely impact its business, prospects, results of operations, cash flows and financial condition.
- Any non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in the company's manufacturing facilities, which could adversely impact on its business, financial condition, cash flows and results of operations.
- Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- Certain of the company's products are produced at dedicated manufacturing facilities. Any delay in production at, or shutdown of, or any interruption in these manufacturing facilities may significantly and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company depends on third party transportation providers for the delivery of raw materials and packing materials to its manufacturing facilities. The company has not entered into any formal contracts with its transport providers and any failures on the part of such service providers to meet their obligations could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company is subject to governmental regulation in India and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and the company failures to comply may result in enforcements, recalls, and other adverse actions.
- A significant number of the company's EBOs are present in four states of India (170 out of its 305 EBOs (representing 55.74%) were present in Uttar Pradesh, Rajasthan, Haryana and Gujarat as of March 31, 2026). Any adverse development in these regions may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has outstanding dues from its overseas customers from time to time. There can be no assurance that such dues will be realized by the company within the requisite timelines under FEMA.
- Any inability to maintain or failures in the company's quality control processes may result in delays, modifications or cancellations of orders placed by its customers, damage the company's reputation and/ or result in legal proceedings, any of which may adversely affect its business, financial condition, cash flows and results of operations.
- The company depends on its partnerships with various architects, builders and contractors and government agencies for sales under the company's B2B channel. Any loss of such relationships may adversely affect its business, financial condition, cash flows, results of operations and prospects.
- The company's inability to collect receivables from its customers or default or delays in payment by them could adversely affect the company's business, financial condition, cash flows and results of operations.
- The company operations requires a significant amount of working capital and an inability to meet its working capital requirements may adversely affect the company's business, financial condition, cash flows and results of operations.
- Failures to accurately forecast customer demand could lead to excess inventories or inventory shortages, which could result in decreased operating margins and reduced cash flows and adversely affect to the company's business, financial condition, cash flows and results of operations.
- The company is significantly dependent on the performance of the real estate and infrastructure industries where its products are utilized. Any negative trends in these industries could adversely affect demand for its products, the company's costs of doing business and its business, financial condition, cash flows and results of operations.
- The activities carried out at the company's manufacturing facilities may result in injury to persons or property, which could result in a suspension of operations and/or the imposition of civil or criminal liabilities. These may adversely affect the company's business, financial condition, cash flows and results of operations.
- Any significant disruptions of information technology systems or breaches of data security could adversely affect the company's business, financial condition, cash flows and results of operations.
- Information relating to the historical capacity of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary.
- The company is exposed to the risk from sanctions laws or other similar regulations, and failures to comply with such laws could potentially have an adverse effect on the company's business, financial condition, cash flows, results of operations and prospects.
- Improper storage, processing and handling of raw materials and finished products may cause damage to the company's inventory leading to an adverse effect on its business, financial condition, cash flows and results of operations.
- The company may be unable to adequately obtain, maintain, protect and enforce its intellectual property rights. The company may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business and operations.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in the Company other than remuneration and reimbursement of expenses.
- The company's Corporate Office and two manufacturing facilities are situated in a building/on land that are not owned by the company. In the event that its lose such rights or are required to renegotiate arrangements for such rights, the company's business, financial condition, cash flows and results of operations may be adversely affected.
- The company's insurance coverage may not be sufficient or may not adequately protect it against risks and unexpected events, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- If the company fails to keep its technical knowledge and process know-how confidential, the company may suffer a loss of its competitive advantage.
- The company currently avail benefits under certain export promotion schemes. Any failures in meeting the obligations under such schemes, may result in adversely affecting the company's business, financial condition, cash flows and results of operations.
- The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategies could have an adverse effect on its business, financial condition, cash flows and results of operations.
- Any downgrade of the company's credit ratings may restrict its access to capital and thereby adversely affect the company's business, financial condition, cash flows and results of operations.
- An inability to establish and maintain effective internal controls could lead to an adverse effect on the company's business, financial condition, cash flows and results of operations.
- Increased losses due to fraud, employee misconduct, employee negligence, theft or similar incidents may have a negative impact on the company's business, financial condition, cash flows and results of operations.
- Certain sections of this Red Herring Prospectus disclose information from the Technopak Report which has been prepared exclusively for the Offer and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry the company operates.
- The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which may be beyond the company's control. Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The company's Promoters and Promoter Group will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise significant influence over the company.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends on the company's earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements and the company may not be able to pay dividends in future.
- The Company will not receive any proceeds from the Offer for Sale portion.
The Issue type of Varmora Granito Ltd is Book Building.
The minimum application for shares of Varmora Granito Ltd is 101.
The total shares issue of Varmora Granito Ltd is 47839255.
Initial public offering of 47,839,255 equity shares of face value of Rs. 2 each ("Equity Shares") of Varmora Granito Limited ("Company" or "Issuer") for cash at a price of Rs. 148 per equity share (including a share premium of Rs. 146 per equity share) ("Offer Price") aggregating to Rs. 708.02 Crores (the "Offer") comprising of a fresh issue of 21,621,621 equity shares of face value of Rs. 2 each aggregating to Rs. 320.00 Crores ("Fresh Issue") and an offer for sale of 26,217,634 equity shares of face value of Rs. 2 each aggregating to Rs. 388.02 Crores by Katsura Investments (Referred to as the "Investor Selling Shareholder"), and such equity shares offered by the investor selling shareholders, the "Offered Shares"). The offer shall constitute 21.17% of the post-offer paid up equity share capital of the company.
The company, in consultation with the brlms, may consider a pre-ipo placement, prior to filing of the pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with Rule 19(2)(b) of the scrr. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. Prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (If Undertaken) shall be appropriately made in the relevant section of the rhp and prospectus.
Price Band: Rs. 148 per equity share bearing face value of Rs. 2 each.
The floor price is 74 times of the face value of the equity shares.
Bids can be made for a minimum of 101 equity shares of face value of Rs. 2 each and in multiples of 101 equity shares of face value of Rs. 2 each thereafter.