Varmora Granito Ltd IPO
Status: Upcoming
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 our revenues are attributable to manufacturing facilities (owned and operated by our Company or Subsidiaries, or third-party contract manufacturers) situated in Morbi, Gujarat, India. Any disruption in the Morbi region, may significantly and adversely affect our business, financial condition, cash flows and results of operations.
- We have an extensive retail distribution network and derive a significant portion of our revenue from operations from our B2C retail chain (comprising exclusive brand outlets ("EBOs") and multi brand outlets ("MBOs")) (accounting for 66.80% of our total domestic sales in Fiscal 2026). We operate all our EBOs and MBOs through franchisees and any non-performance by our franchisees may adversely affect our business, results of operations and financial condition.
- Our Subsidiaries, Associates and Joint Ventures (some of which are also Group Companies) have common pursuits vis-à-vis our Company and are in a similar line of business as our Company, which may lead to a conflict of interest in the future that in turn may adversely impact our business, financial condition, cash flows and results of operations.
- We may undertake strategic acquisitions or investments, which may prove to be difficult to integrate and manage or may not be successful.
- Our operations are subject to volatility in the supply and pricing of raw materials and packing materials. We are also dependent on our top suppliers for the supply for certain raw materials (top 10 suppliers contributed to 8.10% of our 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 our business, financial condition, cash flows and results of operations.
- We derive a portion of our revenue from operations from outside India (revenue from contracts with customers from outside India was 21.11% of our Sale of Products in Fiscal 2026) which exposes us to risks inherent to operations in these foreign jurisdictions. Our global operations expose us to risks such as compliance with local laws, and any failure to comply with applicable laws or regulations could lead to civil, administrative or regulatory proceedings which could adversely affect our business, results of operations and financial condition.
- We operate in highly competitive markets in each of our product categories and an inability to compete effectively may adversely affect our business, financial condition, cash flows and results of operations.
- The Offer Price of our 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 our revenue is generated from products manufactured by third-party contract manufacturers (17.60% of our total revenue from operations in Fiscal 2026) that are engaged with us on a non-exclusive basis. Any disruption or non-performance by these third parties may affect our ability to obtain sufficient or desired quantities of products in a timely manner or at acceptable prices, which may adversely affect our business, financial condition, cash flows and results of operations.
- We are required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate our business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on our business, financial condition, cash flows and results of operations.
- We have entered into and may continue to enter into related party transactions. Failure to ensure that such related party transactions are entered into on an "arm's length" basis could have an adverse effect on our business, financial condition, cash flows and results of operations.
- We have significant power and fuel requirements and any disruption to power or fuel sources could increase our production costs and adversely affect our business, financial condition, cash flows and results of operations.
- We have certain contingent liabilities that have not been provided for in our Restated Consolidated Financial Information, which if they materialize, may adversely affect our financial condition.
- If we are unable to maintain and enhance the value and reputation of our brand and/or counter any negative publicity, our business, financial condition, cash flows and results of operations could be materially adversely affected.
- We have recently commenced operations of manufacturing facility in Tezpur, Assam, through our Joint Venture, Allemby Ceramics Private Limited ("Allemby"), which may expose us to operational, ramp-up, integration and utilization risks. Further, we have 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, our 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 our 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.
- Our success depends in large part upon our Promoters, Directors, Key Managerial Personnel, Senior Management and certain other employees and our inability to attract, train and retain such persons could adversely affect our business, financial condition, cash flows and results of operations.
- Our operations are dependent on our 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 our business, financial condition, cash flows and results of operations.
- Our business is capital intensive and we have incurred indebtedness. Further, our lenders have created charges over our movable and immovable properties in respect of finance availed by us. Our inability to obtain further financing or meet our obligations, including financial and other covenants under our debt financing arrangements could adversely affect our business, financial condition, cash flows and results of operations.
- There are outstanding litigation against our Company, Directors, Promoters, Subsidiaries, Key Managerial Personnel, Senior Management and Group Companies. An adverse outcome in any of these proceedings may affect our reputation and standing and impact our future business and could have a material adverse effect on our business, financial condition, cash flows and results of operations.
- Our 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 our 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 our financial statements and which could adversely affect our business, financial condition, cash flows and results of operations.
- We face risks such as cost overruns and delays in expanding and commissioning new manufacturing facilities. Failure to manage these risks could delay the commissioning of our upcoming manufacturing facilities and adversely impact our 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 our manufacturing facilities, which could adversely impact on our business, financial condition, cash flows and results of operations.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our 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 our business, financial condition, cash flows and results of operations.
- 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 depend on third party transportation providers for the delivery of raw materials and packing materials to our manufacturing facilities. We have not entered into any formal contracts with our transport providers and any failure on the part of such service providers to meet their obligations could adversely affect our business, financial condition, cash flows and results of operations.
- We are subject to governmental regulation in India and we may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and our failure to comply may result in enforcements, recalls, and other adverse actions.
- A significant number of our EBOs are present in four states of India (170 out of our 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 our business, financial condition, cash flows and results of operations.
- We have outstanding dues from our overseas customers from time to time. There can be no assurance that such dues will be realized by us within the requisite timelines under FEMA.
- Any inability to maintain or failure in our quality control processes may result in delays, modifications or cancellations of orders placed by our customers, damage our reputation and/ or result in legal proceedings, any of which may adversely affect our business, financial condition, cash flows and results of operations.
- We depend on our partnerships with various architects, builders and contractors and government agencies for sales under our B2B channel. Any loss of such relationships may adversely affect our business, financial condition, cash flows, results of operations and prospects.
- Our inability to collect receivables from our customers or default or delays in payment by them could adversely affect our business, financial condition, cash flows and results of operations.
- Our operations require a significant amount of working capital and an inability to meet our working capital requirements may adversely affect our business, financial condition, cash flows and results of operations.
- Failure 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 our business, financial condition, cash flows and results of operations.
- We are significantly dependent on the performance of the real estate and infrastructure industries where our products are utilized. Any negative trend in these industries could adversely affect demand for our products, our costs of doing business and our business, financial condition, cash flows and results of operations.
- The activities carried out at our 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 our business, financial condition, cash flows and results of operations.
- Any significant disruptions of information technology systems or breaches of data security could adversely affect our business, financial condition, cash flows and results of operations.
- Information relating to the historical capacity of our manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and our future production and capacity may vary.
- We are exposed to the risk from sanctions laws or other similar regulations, and failure to comply with such laws could potentially have an adverse effect on our 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 our inventory leading to an adverse effect on our business, financial condition, cash flows and results of operations.
- We may be unable to adequately obtain, maintain, protect and enforce our intellectual property rights. We may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations.
- Certain of our Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in our Company other than remuneration and reimbursement of expenses.
- Our Corporate Office and two manufacturing facilities are situated in a building/on land that are not owned by us. In the event that we lose such rights or are required to renegotiate arrangements for such rights, our business, financial condition, cash flows and results of operations may be adversely affected.
- Our insurance coverage may not be sufficient or may not adequately protect us against risks and unexpected events, which may adversely affect our business, financial condition, cash flows and results of operations.
- If we fail to keep our technical knowledge and process know-how confidential, we may suffer a loss of our competitive advantage.
- We currently avail benefits under certain export promotion schemes. Any failure in meeting the obligations under such schemes, may result in adversely affecting our business, financial condition, cash flows and results of operations.
- Our inability to effectively manage our growth or to successfully implement our business plan and growth strategies could have an adverse effect on our business, financial condition, cash flows and results of operations.
- Any downgrade of our credit ratings may restrict our access to capital and thereby adversely affect our 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 our 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 our 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 us 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.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance that may vary from any standard methodology that is applicable across the industry we operate.
- Our 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 our control. Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Our Promoters and Promoter Group will continue to retain significant shareholding in our Company after the Offer, which will allow them to exercise significant influence over us.
- We cannot assure payment of dividends on the Equity Shares in the future and our ability to pay dividends in the future will depend on our earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements and we may not be able to pay dividends in future.
- Our 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
---
40.27
28.55
P/E-Diluted EPS
---
---
---
RONW(%)
7.79
15.89
8.79
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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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 has established a deep retail distribution footprint, particularly in India. It also launched marble-like products across four surfaces in FY25.
Company is planning to raise Rs 400 Crore equity shares via fresh issue through IPO by issuing 52,435,268 equity shares of face value of Rs 2 each through offer for sale.
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 |
- 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 our revenues are attributable to manufacturing facilities (owned and operated by our Company or Subsidiaries, or third-party contract manufacturers) situated in Morbi, Gujarat, India. Any disruption in the Morbi region, may significantly and adversely affect our business, financial condition, cash flows and results of operations.
- We have an extensive retail distribution network and derive a significant portion of our revenue from operations from our B2C retail chain (comprising exclusive brand outlets ("EBOs") and multi brand outlets ("MBOs")) (accounting for 66.80% of our total domestic sales in Fiscal 2026). We operate all our EBOs and MBOs through franchisees and any non-performance by our franchisees may adversely affect our business, results of operations and financial condition.
- Our Subsidiaries, Associates and Joint Ventures (some of which are also Group Companies) have common pursuits vis-à-vis our Company and are in a similar line of business as our Company, which may lead to a conflict of interest in the future that in turn may adversely impact our business, financial condition, cash flows and results of operations.
- We may undertake strategic acquisitions or investments, which may prove to be difficult to integrate and manage or may not be successful.
- Our operations are subject to volatility in the supply and pricing of raw materials and packing materials. We are also dependent on our top suppliers for the supply for certain raw materials (top 10 suppliers contributed to 8.10% of our 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 our business, financial condition, cash flows and results of operations.
- We derive a portion of our revenue from operations from outside India (revenue from contracts with customers from outside India was 21.11% of our Sale of Products in Fiscal 2026) which exposes us to risks inherent to operations in these foreign jurisdictions. Our global operations expose us to risks such as compliance with local laws, and any failure to comply with applicable laws or regulations could lead to civil, administrative or regulatory proceedings which could adversely affect our business, results of operations and financial condition.
- We operate in highly competitive markets in each of our product categories and an inability to compete effectively may adversely affect our business, financial condition, cash flows and results of operations.
- The Offer Price of our 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 our revenue is generated from products manufactured by third-party contract manufacturers (17.60% of our total revenue from operations in Fiscal 2026) that are engaged with us on a non-exclusive basis. Any disruption or non-performance by these third parties may affect our ability to obtain sufficient or desired quantities of products in a timely manner or at acceptable prices, which may adversely affect our business, financial condition, cash flows and results of operations.
- We are required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate our business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on our business, financial condition, cash flows and results of operations.
- We have entered into and may continue to enter into related party transactions. Failure to ensure that such related party transactions are entered into on an "arm's length" basis could have an adverse effect on our business, financial condition, cash flows and results of operations.
- We have significant power and fuel requirements and any disruption to power or fuel sources could increase our production costs and adversely affect our business, financial condition, cash flows and results of operations.
- We have certain contingent liabilities that have not been provided for in our Restated Consolidated Financial Information, which if they materialize, may adversely affect our financial condition.
- If we are unable to maintain and enhance the value and reputation of our brand and/or counter any negative publicity, our business, financial condition, cash flows and results of operations could be materially adversely affected.
- We have recently commenced operations of manufacturing facility in Tezpur, Assam, through our Joint Venture, Allemby Ceramics Private Limited ("Allemby"), which may expose us to operational, ramp-up, integration and utilization risks. Further, we have 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, our 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 our 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.
- Our success depends in large part upon our Promoters, Directors, Key Managerial Personnel, Senior Management and certain other employees and our inability to attract, train and retain such persons could adversely affect our business, financial condition, cash flows and results of operations.
- Our operations are dependent on our 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 our business, financial condition, cash flows and results of operations.
- Our business is capital intensive and we have incurred indebtedness. Further, our lenders have created charges over our movable and immovable properties in respect of finance availed by us. Our inability to obtain further financing or meet our obligations, including financial and other covenants under our debt financing arrangements could adversely affect our business, financial condition, cash flows and results of operations.
- There are outstanding litigation against our Company, Directors, Promoters, Subsidiaries, Key Managerial Personnel, Senior Management and Group Companies. An adverse outcome in any of these proceedings may affect our reputation and standing and impact our future business and could have a material adverse effect on our business, financial condition, cash flows and results of operations.
- Our 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 our 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 our financial statements and which could adversely affect our business, financial condition, cash flows and results of operations.
- We face risks such as cost overruns and delays in expanding and commissioning new manufacturing facilities. Failure to manage these risks could delay the commissioning of our upcoming manufacturing facilities and adversely impact our 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 our manufacturing facilities, which could adversely impact on our business, financial condition, cash flows and results of operations.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our 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 our business, financial condition, cash flows and results of operations.
- 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 depend on third party transportation providers for the delivery of raw materials and packing materials to our manufacturing facilities. We have not entered into any formal contracts with our transport providers and any failure on the part of such service providers to meet their obligations could adversely affect our business, financial condition, cash flows and results of operations.
- We are subject to governmental regulation in India and we may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and our failure to comply may result in enforcements, recalls, and other adverse actions.
- A significant number of our EBOs are present in four states of India (170 out of our 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 our business, financial condition, cash flows and results of operations.
- We have outstanding dues from our overseas customers from time to time. There can be no assurance that such dues will be realized by us within the requisite timelines under FEMA.
- Any inability to maintain or failure in our quality control processes may result in delays, modifications or cancellations of orders placed by our customers, damage our reputation and/ or result in legal proceedings, any of which may adversely affect our business, financial condition, cash flows and results of operations.
- We depend on our partnerships with various architects, builders and contractors and government agencies for sales under our B2B channel. Any loss of such relationships may adversely affect our business, financial condition, cash flows, results of operations and prospects.
- Our inability to collect receivables from our customers or default or delays in payment by them could adversely affect our business, financial condition, cash flows and results of operations.
- Our operations require a significant amount of working capital and an inability to meet our working capital requirements may adversely affect our business, financial condition, cash flows and results of operations.
- Failure 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 our business, financial condition, cash flows and results of operations.
- We are significantly dependent on the performance of the real estate and infrastructure industries where our products are utilized. Any negative trend in these industries could adversely affect demand for our products, our costs of doing business and our business, financial condition, cash flows and results of operations.
- The activities carried out at our 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 our business, financial condition, cash flows and results of operations.
- Any significant disruptions of information technology systems or breaches of data security could adversely affect our business, financial condition, cash flows and results of operations.
- Information relating to the historical capacity of our manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and our future production and capacity may vary.
- We are exposed to the risk from sanctions laws or other similar regulations, and failure to comply with such laws could potentially have an adverse effect on our 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 our inventory leading to an adverse effect on our business, financial condition, cash flows and results of operations.
- We may be unable to adequately obtain, maintain, protect and enforce our intellectual property rights. We may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations.
- Certain of our Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in our Company other than remuneration and reimbursement of expenses.
- Our Corporate Office and two manufacturing facilities are situated in a building/on land that are not owned by us. In the event that we lose such rights or are required to renegotiate arrangements for such rights, our business, financial condition, cash flows and results of operations may be adversely affected.
- Our insurance coverage may not be sufficient or may not adequately protect us against risks and unexpected events, which may adversely affect our business, financial condition, cash flows and results of operations.
- If we fail to keep our technical knowledge and process know-how confidential, we may suffer a loss of our competitive advantage.
- We currently avail benefits under certain export promotion schemes. Any failure in meeting the obligations under such schemes, may result in adversely affecting our business, financial condition, cash flows and results of operations.
- Our inability to effectively manage our growth or to successfully implement our business plan and growth strategies could have an adverse effect on our business, financial condition, cash flows and results of operations.
- Any downgrade of our credit ratings may restrict our access to capital and thereby adversely affect our 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 our 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 our 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 us 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.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance that may vary from any standard methodology that is applicable across the industry we operate.
- Our 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 our control. Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Our Promoters and Promoter Group will continue to retain significant shareholding in our Company after the Offer, which will allow them to exercise significant influence over us.
- We cannot assure payment of dividends on the Equity Shares in the future and our ability to pay dividends in the future will depend on our earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements and we may not be able to pay dividends in future.
- Our 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 up to [*] 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.[*] per equity share (including a share premium of Rs.[*] per equity share) ("Offer Price") aggregating up to Rs. [*] crores (the "Offer") comprising of a fresh issue of up to [*] equity shares of face value of Rs. 2/- each aggregating up to Rs. 400.00 crores ("Fresh Issue") and an offer for sale of up to 52,435,268 equity shares of face value of Rs.2/- each aggregating up to Rs. [*] crores comprising of up to 49,156,579 equity shares of face value of Rs.2/- each aggregating up to Rs. [*] crores by Katsura Investments (Referred to as the "Investor Selling Shareholder"), up to 1,092,897 equity shares of face value of Rs.2/- each aggregating up to Rs. [*] crores by Parsotambhai Jivrajbhai Patel, up to 1,092,896 equity shares of face value of Rs.2/- each aggregating up to Rs. [*] crores by Ramanbhai Jivrajbhai Varmora and up to 1,092,896 equity shares of face value of Rs.2/- each aggregating up to Rs. [*] crores by Vallabhbhai Jivrajbhai Varmora (Collectively Referred to as the "Promoter Group Selling Shareholders" and with the investor selling shareholder, the "Selling Shareholders", and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer shall constitute [*]% 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.
The face value of the equity shares is Rs.2/- each. the offer price is [*] times the face value of the equity shares.
The price band and the minimum bid lot will be decided by the company.