The Varmora Granito listing happened at ₹155 on the NSE on 29 September 2026. That is 4.73 per cent above the issue price of ₹148. On the BSE the stock opened at ₹152, or 2.70 per cent higher. Anyone who got one lot of 101 shares was up about ₹707 at the NSE opening price.
The interesting part is what came before it. Our grey market tracker showed a premium of ₹1 on listing morning, which works out to 0.68 per cent. The stock opened at seven times that premium on the NSE. For once the grey market was too pessimistic instead of too excited.
The listing day numbers
| Item | Figure |
|---|---|
| Issue price | ₹148 (band ₹140 to ₹148) |
| NSE listing price | ₹155 (+4.73%) |
| BSE listing price | ₹152 (+2.70%) |
| Lot size | 101 shares, ₹14,948 at ₹148 |
| Issue size | ₹708.02 crore |
| Total subscription | 1.58 times |
| GMP on listing morning | ₹1 (0.68%) |
Listing price here means the NSE opening price. The two exchanges rarely open a new stock at the same number, and on 29 September the gap was ₹3 a share. When you read that a stock listed at a 5 per cent premium, check which exchange the writer used. Our own Varmora Granito IPO page records the NSE price of ₹155 and the intraday price of ₹152.19.
What the grey market got wrong
GMP, or grey market premium, is the price unofficial dealers quote for an IPO application before the shares list. It is not an exchange price. Nobody regulates it and nobody has to honour it.
Here is how it moved through the week on our tracker. The issue closed on 24 September and listed on 29 September.
- 24 September: ₹0.50, or 0.34 per cent
- 25 September: ₹0.50, or 0.34 per cent
- 26 and 27 September: zero
- 28 September: ₹1, or 0.68 per cent
- 29 September, listing day: ₹1, or 0.68 per cent
So the grey market spent two days quoting nothing at all, then settled on a rupee. The NSE opened the stock ₹7 above the issue price. A month ago we wrote about a day when the grey market was wrong on all three listings in the other direction, promising gains that never arrived. Varmora is the same lesson from the opposite side. The GMP is one small pool of dealers guessing. It is not a forecast.
Demand was thin and it was lopsided
The IPO opened on 22 September and closed on 24 September. It was subscribed 1.58 times in total, which is modest for a mainboard issue of this size. The split matters more than the headline number.
| Category | Times subscribed |
|---|---|
| QIB (institutions) | 3.16 |
| NII (high net worth) | 0.92 |
| Retail | 1.00 |
| Total | 1.58 |
QIB means qualified institutional buyers, the mutual funds and insurers who bid in the last hours. NII is the non-institutional category, the large individual and corporate applicants who usually borrow to apply. Retail is you, applying up to ₹2 lakh through UPI.
Institutions took the issue at 3.16 times their quota. The NII book stopped at 0.92 times, so it did not even fill. Retail came in at exactly 1.00 times. That pattern says the funding driven applicants stayed away, and those are the people who normally sell on listing morning. A thin NII book often means less selling pressure at the open, which fits a stock that listed above a grey market quote of almost nothing.
Where the ₹708 crore goes
The issue was ₹708.02 crore in total. Of that, ₹320 crore was a fresh issue and ₹388.02 crore was an offer for sale. Only the fresh issue money reaches the company. The offer for sale money goes to the shareholders who sold, so more than half of this IPO was an exit rather than a fund raise.
Of the fresh money, ₹245 crore is earmarked for repaying borrowings of the company and its subsidiaries, with the rest for general corporate purposes. The debt was already coming down. Total borrowing fell from ₹505.16 crore in FY2025 to ₹357.95 crore in FY2026.
Promoter holding was 52 per cent before the issue and 46.55 per cent after it. Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel are the promoters. JM Financial, Goldman Sachs (India) Securities and SBI Capital Markets ran the issue, and KFin Technologies is the registrar.
What the price says about earnings
Varmora Granito makes ceramic and vitrified tiles from eight plants in the Morbi cluster of Gujarat. Glazed vitrified and technical tiles, the premium end, made up about 84 per cent of its tile revenue in FY2026.
Total income was ₹1,562.53 crore in FY2026 against ₹1,492.68 crore in FY2025 and ₹1,472.58 crore in FY2024. Sales have barely moved in three years. Profit after tax was ₹55.09 crore in FY2026, up from ₹30.77 crore, after ₹44.94 crore in FY2024. So profit nearly doubled last year, but it also fell the year before.
At ₹148 the issue was priced at about 60.66 times earnings on an EPS of ₹2.44, with return on net worth of 7.79 per cent and RoCE of 9.89 per cent. That is a high multiple on modest returns. The market has now taken it slightly higher. Natural gas is the main input cost in tile making and all eight plants sit in one cluster, so a gas price move or a Morbi specific disruption hits the whole company at once.
What happens next
The shares are credited and trading, so the IPO cycle for this one is done. Allotment was finalised on 25 September and refunds went out on 28 September. From here it is an ordinary listed stock and the grey market number stops existing.
Three more mainboard issues are in the market this week, and Vishal Nirmiti opens on 30 September. You can see how Varmora sits against every other mainboard debut of this year on our IPO listing performance table, which records issue price, listing price and the gain or loss for each one.
