Varmora Granito IPO
Varmora Granito IPO is a mainboard IPO raising ₹708 Cr at ₹140 – ₹148 a share. It listed on 29 Sept 2026 at ₹155, +4.7% against its issue price of ₹148, and trades at ₹123 today (−16.9% since issue). It was subscribed 1.58× in total.
Just covered — bids slightly exceed the shares on offer
populated partly populated we hold nothing here — the tab says why
Where your money goes
Only the fresh issue reaches the company. The offer for sale is existing shareholders selling their own stock — that money goes to them, not the business.
55% of this issue is existing shareholders cashing out. Only ₹320 Cr reaches the business.
A red herring prospectus is filed before the price is fixed, so it states share counts rather than rupee amounts. derived: shares x cut-off price Rs148. Checked: exchange issue size Rs708 Cr vs derived Rs708 Cr (0.0% apart).
What the fresh money funds
The stated uses of the net proceeds, from the prospectus’s Objects of the Issue table. Only the fresh issue funds these — the offer-for-sale money goes to the selling shareholders above.
As stated in the prospectus. “General corporate purposes” is the part with no committed use; SEBI caps it at 25% of the issue.
The price they’re asking
From the prospectus’s own “Basis for Issue Price” — the issuer’s earnings multiple against the peers it chose to compare itself with.
Priced 10% above the median multiple of the peers the issuer itself names.
| Listed peer (issuer’s choice) | P/E | RoNW | EPS |
|---|---|---|---|
| Kajaria Ceramics Limited | 40.27× | 15.89% | ₹30.44 |
| Somany Ceramics Limited | 28.55× | 8.79% | ₹19.76 |
| Asian Granito India Limited | 72× | 1.23% | ₹0.7 |
| Orient Bell Limited | 47.67× | 3.78% | ₹8.43 |
| This issue | 48.5× | 7.79% | ₹3.05 |
derived: cut-off price Rs148 / stated EPS Rs3.05 (FY2026 (year ended March 31, 2026) diluted EPS, Restated Consolidated Financial Information). Peer figures are as printed in the prospectus — they date from its filing, not today. A multiple is one lens, not a verdict.
Terms of the issue
The mechanics of what is being sold. Held for every issue we track.
Not here yet
The anchor-investor allocation — which institutions were allotted shares before bidding opened — is still to be read out of its document.