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Varmora Granito Ltd, a leading tile and bathware manufacturer based in Rajkot, has filed its draft red herring prospectus with the Securities and Exchange Board of India to launch its IPO. The offering includes a fresh issue worth INR 400 crore and an Offer for Sale (OFS) of 5.24 crore shares by promoters and investor Kastura Investments. The funds raised will primarily be used to repay borrowings of both the company and its subsidiaries, and for corporate purposes. The IPO will be managed by JM Financial, Goldman Sachs India, and SBI Capital Markets.
Varmora Granito Ltd, a prominent manufacturer in India's tiles and bathware sector, has officially taken a step towards launching its Initial Public Offering by filing draft papers with the Securities and Exchange Board of India (SEBI). The move signals the company's intent to raise capital to reduce its debt and strengthen its financial footing. Advertisement
The proposed IPO comprises two parts: a fresh equity issue worth INR 400 crore and an Offer for Sale (OFS) involving 5.24 crore equity shares by existing stakeholders, including the company's promoters and Kastura Investments, a private investor. This structure will not only bring fresh capital into the business but also allow early investors to pare down their holdings.
Out of the capital to be raised through the fresh issue, Varmora intends to use INR 320 crore to reduce its own borrowings. An additional INR 280 crore will go toward clearing debts of its subsidiaries Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles. The remaining INR 40 crore is earmarked for general corporate purposes.
The Rajkot-headquartered company operates nine manufacturing units in Gujarat's Morbi region India?s largest tile production hub and has built a wide-reaching distribution network. Its offerings include a variety of glazed vitrified, polished vitrified, and ceramic tiles. In FY 2025, Varmora expanded its portfolio by introducing marble-look tiles in four distinct surface finishes using integrated stone technology.
As of the financial year ending March 31, 2025, the company had over 3,500 stock keeping units (SKUs) spanning 20 different surface applications, catering to various use cases including flooring, facades, wall cladding, back panels, and kitchen slabs.
Its sales network is robust, featuring 286 exclusive brand outlets and over 2,000 multi-brand outlets across India. Varmora also distributes through B2B channels, serving builders, contractors, developers, and government-backed infrastructure projects a segment that's become increasingly crucial in recent years due to a push for urban and rural housing.
To steer the IPO, the company has appointed JM Financial, Goldman Sachs (India) Securities, and SBI Capital Markets as lead managers. Their role will include marketing the issue and handling regulatory requirements in the run-up to the IPO's launch.
Source PTI
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