Varmora Granito Aims for IPO to Elevate Market Position

Varmora Granito Ltd, a Rajkot-based tiles and bathware manufacturer, seeks market regulator Sebi's approval for an IPO. This involves a fresh Rs 400 crore share issue and an Offer for Sale by promoters and Kastura Investments. Funds will repay debts and support corporate needs.

Rajkot-based tiles and bathware giant, Varmora Granito Ltd, is making strides towards launching an Initial Public Offering (IPO). The company recently filed draft papers with the Securities and Exchange Board of India (Sebi) for approval.

The proposed IPO consists of issuing fresh shares worth Rs 400 crore alongside an Offer for Sale (OFS) of 5.24 crore equity shares by promoters and Kastura Investments, as highlighted in the Draft Red Herring Prospectus (DRHP) submitted on Thursday.

Varmora Granito plans to direct Rs 320 crore from the IPO proceeds to settle its debts, Rs 280 crore towards subsidiary debt clearance, and allocate Rs 40 crore for general corporate purposes. The company operates nine facilities in Gujarat and markets an extensive range of over 3,500 SKUs via 286 exclusive outlets and a vast B2B network.

(With inputs from agencies.)