🚫 Avoid
Listed
Diversified Consumer Products
Varmora Granito Limited IPO
₹708 Cr · Fresh Issue & OFS · Diversified Consumer Products
Price Band
₹140 – ₹148
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹708 Cr
Fresh Issue & OFS
Market Cap
₹3344.97 Cr
At upper band
P/E Ratio
60.7x
P/S: 2.2x
Listing Date
29 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
22 Sep 2026
✓
Closes
24 Sep 2026
✓
Allotment
25 Sep 2026
✓
Refund
28 Sep 2026
✓
Listing
29 Sep 2026
IPO India Hub: Strong Avoid
Conviction
2/10
The company is valued at 2.64× sector midpoint (60.7x P/E vs. 23x niche baseline) with a razor-thin 3.6% net margin and negligible revenue growth of 3% CAGR over two years. Weak ROCE of 9.89% and 54.8% OFS (promoter exit signal) compound the overvaluation risk.
Listing Performance
Issue Price
₹148
Allotment price
Listing Price
₹152
+2.7% on listing day
Current Price (CMP)
₹123.95
-16.3% vs issue
Listed On
29 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
PAT recovery and EBITDA stability
Net profit rebounded to ₹55.1 Cr in FY0 from ₹30.8 Cr in FY-1, showing operational recovery. EBITDA margin of 14.18% indicates the underlying business generates reasonable operating cash, though conversion to net profit remains weak.
✓ Strength
Reputed lead manager consortium
JM Financial, Goldman Sachs, and SBI Capital Markets are tier-1 institutions, which typically signals credible due diligence and post-listing support. This reduces execution risk on capital deployment.
⚠ Risk
Severe valuation premium over sector
At 60.7x P/E, the company trades at 2.64× the niche/unlisted sector midpoint of 23x—well beyond the 2.0× threshold for Avoid. With NPM of only 3.6%, there is no margin quality to justify this premium; peers in diversified consumer products trade at 25–40x with 8–12% net margins.
⚠ Risk
Stagnant revenue growth and weak returns
Two-year revenue CAGR of 3% is below inflation and signals mature, low-growth business. ROCE of 9.89% is well below cost of capital, indicating capital is not being deployed efficiently to generate shareholder returns.
₹ Valuation
Overvalued relative to fundamentals
P/E of 60.7x against a sector midpoint of 23x yields a 2.64× multiple—a 164% premium with no earnings growth or margin expansion to support it. P/S of 2.2x is also elevated for a 3.6% margin business. At ₹148 upper band, downside risk is material if growth does not accelerate.
👁 Watch
Promoter stake dilution and OFS exit
Promoter holding falls from 52% to 47.04% post-issue, and OFS comprises 54.8% of the total issue—a strong signal of insider selling. Monitor whether promoters reduce holdings further in the 6–12 months post-listing, which would confirm lack of confidence.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Varmora Granito Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹1512.46 Cr
Net Profit
₹55.09 Cr
Industry
Diversified Consumer Products
Issue Type
Fresh Issue & OFS
Promoters
BHAVESH VALLABHDAS VARMORA, HIREN R VARMORA AND PRAMODKUMAR PARSOTAMBHAI PATEL
Lead Managers
JM Financial, Goldman Sachs and SBI Capital Markets
Quick Actions
Frequently Asked Questions
Avoid. The company is valued at 2.64× sector midpoint (60.7x P/E vs. 23x niche baseline) with a razor-thin 3.6% net margin and negligible revenue growth of 3% CAGR over two years. Weak ROCE of 9.89% and 54.8% OFS (promoter exit signal) compound the overvaluation risk.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹140 – ₹148.
The IPO opens on 22 Sep 2026. It closes on 24 Sep 2026. Allotment is expected on 25 Sep 2026. Refunds initiate on 28 Sep 2026. Listing on BSE and NSE is on 29 Sep 2026.
The lead managers for the IPO are JM Financial, Goldman Sachs and SBI Capital Markets. Check the SEBI filing for the registrar details.
The IPO listed on 29 Sep 2026 at ₹152 against an issue price of ₹148 (+2.7% on listing day). The current market price (CMP) is approximately ₹123.95 (+-16.3% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 24 Sep 2026. The company is valued at 2.64× sector midpoint (60.7x P/E vs. 23x niche baseline) with a razor-thin 3.6% net margin and negligible revenue growth of 3% CAGR over two years. Weak ROCE of 9.89% and 54.8% OFS (promoter exit signal) compound the overvaluation risk.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 24 Sep 2026. The IPO is priced at a P/E of 60.7x. Market cap at issue price is ₹3344.97 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 24 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Varmora Granito Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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