#VarmoraGranito #IPO #TilesIndustry #CeramicTiles #GVT #IntegratedStoneTechnology #Morbi #GujaratManufacturing #LuxuryTiles #PremiumTiles #IndianStockMarket #SEBI
Chandigarh: Rajkot-based Varmora Granito Ltd (VGL), one of India’s leading tile manufacturers, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The offering will comprise a Fresh Issue aggregating up to ₹400 crore and an Offer for Sale (OFS) of up to 5,24,35,268 equity shares by existing shareholders.
The OFS will include sales by investor Kastura Investments and promoter group selling shareholders Parsotambhai Jivrajbhai Patel, Ramanbhai Jivrajbhai Varmora, and Vallabhbhai Jivrajbhai Varmora. This mix of fresh issuance and OFS is expected to strengthen the company’s balance sheet while also allowing early investors and promoters to partially monetise their holdings.
Market Leadership and Strong Growth Track Record
According to the Technopak Report cited in the DRHP, VGL ranks among the top players in the Indian tiles market in terms of revenue for fiscal year 2025. It also holds the distinction of being the fastest-growing among its listed peers, with an impressive revenue compound annual growth rate (CAGR) in the period from FY 2023 to FY 2025.
Varmora’s product innovation history is notable. The company was the first to launch digitally printed wall tiles in 2010 and one of the first in India to introduce homogenous-body slabs in 2006, with dimensions of 1170 x 1770 mm and 1185 x 1785 mm full-body slabs. It pioneered double charge tiles in 2012, high gloss and rocker finishes in 2017, and kitchen slabs (80×260) in 2020.
A major breakthrough came in 2024 when VGL became the first company in Asia to commercialise Integrated Stone Technology (IST) in collaboration with SACMI Imola S.C., a globally renowned Italian tile equipment manufacturer.
Product Portfolio and Focus on Premium Segments
VGL’s product portfolio includes a wide range of aesthetically designed, durable, and high-quality tiles. The company has positioned itself strongly in the premium segment, especially in Glazed Vitrified Tiles (GVT).
The premium GVT segment accounted for:
-
78.71% of revenue from tile operations in FY 2025
-
75.37% in FY 2024
-
69.35% in FY 2023
This focus on higher-value products not only enhances profit margins but also aligns with evolving consumer preferences towards premium, design-led home and commercial interiors.
Manufacturing Strength and Strategic Location
VGL operates nine manufacturing facilities strategically clustered in Morbi, Gujarat — the largest ceramic tile manufacturing hub in India. This geographic concentration provides significant logistical advantages, economies of scale, and cost efficiencies in procurement, production, and distribution.
The company’s state-of-the-art facilities integrate advanced automation and cutting-edge technologies, ensuring consistent product quality and enabling large-scale production to meet both domestic and international demand.
IPO Objectives and Fund Utilisation
While the DRHP does not yet detail the final utilisation of IPO proceeds, industry experts anticipate that the ₹400 crore Fresh Issue will be channelled towards:
-
Capacity expansion and upgradation of manufacturing facilities
-
Debt reduction to strengthen the balance sheet
-
Funding working capital requirements
-
Potential investments in research, product development, and marketing initiatives
The OFS component will not provide funds to the company but will allow selling shareholders to partially exit.
Financial Performance and Industry Positioning
VGL’s rapid growth in recent years has been supported by both domestic demand and strong export performance. India’s tile industry has been expanding due to urbanisation, infrastructure development, and increasing disposable incomes leading to home renovation trends.
The Technopak Report notes that VGL’s ability to anticipate market trends and adopt new technologies early has been a critical differentiator. By leading innovations — from digitally printed designs to integrated stone technology — the company has secured a loyal customer base in both B2B and B2C segments.
IPO Management and Legal Counsel
The IPO will be managed by JM Financial Limited, Goldman Sachs (India) Securities Private Limited, and SBI Capital Markets Limited, acting as the Book Running Lead Managers (BRLMs). Trilegal is serving as the legal counsel for the issue.
Post-IPO, the company’s listing will be subject to market conditions and regulatory approvals. If successful, the listing is expected to enhance VGL’s brand visibility, unlock shareholder value, and provide additional capital for strategic growth initiatives.
Industry Outlook
The Indian tile industry is projected to continue growing at a healthy pace, driven by real estate expansion, government infrastructure projects, and export demand. Rising interest in luxury and premium tiles further benefits companies like Varmora Granito, which already have a strong presence in high-value product categories.
With its consistent track record, strong innovation culture, and robust manufacturing base, VGL is well-positioned to capitalise on these opportunities post-IPO.
#VarmoraGranito #IPO #TilesIndustry #CeramicTiles #GVT #IntegratedStoneTechnology #Morbi #GujaratManufacturing #LuxuryTiles #PremiumTiles #IndianStockMarket #SEBI #CapitalMarkets #IPO2025 #VarmoraIPO #ConstructionIndustry #HomeInteriors #DesignInnovation #BrandLeadership
