Varmora Granito files DRHP for IPO

Ahmedabad, August 8, 2025 – Varmora Granito Limited has filed its Draft Red Herring Prospectus (DRHP) for a 100% book-built initial public offer comprising a ₹4,000.00 million fresh issue and an offer for sale (OFS) of up to 52,435,268 equity shares.

Structure of the IPO

The upcoming IPO will be a mix of a fresh issue and an offer for sale (OFS). Under the fresh issue, the company plans to raise to ₹400 crore by issuing new equity shares.

The OFS portion will see existing shareholders offloading part of their stake:

• Katsura Investments, an affiliate of Carlyle, will sell up to 4.91 crore shares.
• Promoter group members will also participate in the OFS:
  • Parsotambhai Jivrajbhai Patel: 10.92 lakh shares
  • Ramanbhai Jivrajbhai Varmora: 10.92 lakh shares
  • Vallabhbhai Jivrajbhai Varmora: 10.92 lakh shares

This blended structure will allow the company to raise fresh capital while also enabling partial exits by key investors. Post-offer shareholding percentages will be updated upon finalisation of the price band.

Use of IPO Proceeds

The company plans to use the money raised from the fresh issue primarily to reduce its debt burden. Here’s how the proceeds are expected to be allocated:

• Around ₹320 crore will go towards repaying or prepaying loans taken by the company and its subsidiaries. This includes Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles.
• The remaining amount will be set aside for general corporate purposes, with the exact figure to be finalised closer to the listing.

Financial Performance

Consolidated Financial Snapshot

• Revenue from operations rose marginally to ₹14,460.29 million in FY25, up from ₹14,354.81 million in FY24.
• Net profit declined to ₹307.73 million in FY25, compared to ₹449.35 million in FY24.
• Total assets increased to ₹15,898.04 million, from ₹14,761.64 million a year ago.
• Borrowings climbed to ₹5,051.55 million in FY25, up from ₹4,128.88 million in FY24.
• Basic EPS dropped to ₹1.75 from ₹2.19 in FY24.

Lead Managers & Listing

Varmora Granito has filed draft papers with SEBI for an IPO. JM Financial, Goldman Sachs India, and SBI Capital Markets are acting as the book-running lead managers, while KFin Technologies is the registrar. The company plans to list on both BSE and NSE.

REF: https://nsearchives.nseindia.com/corporate/Registration_07082025232634_DRHP.pdf

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