Varmora Granito IPO Day 3: Subdued demand, zero GMP as subscription lags

Varmora Granito's initial public offering reached its third and final day of bidding with muted market interest, according to reports. The Rs 708-crore issue had garnered 27% subscription by the conclusion of Day 2 trading. Grey market indicators showed zero GMP, suggesting limited enthusiasm among unofficial traders for the granito and tiles manufacturer's shares ahead of the listing.

Despite the subdued demand seen so far, multiple analysts maintained a subscribe rating on the offering. Their recommendation was anchored on the company's anticipated earnings recovery trajectory for fiscal year 2026 and its stated plans to reduce debt levels. These fundamental factors formed the basis for positive analyst sentiment despite the current muted investor participation in the bidding process.

The weak GMP and moderate subscription levels during the initial days reflect broader caution in India's primary market. Investors are increasingly selective about new issuances, demanding clearer visibility on profitability timelines and balance sheet strength. For Varmora Granito, the earnings recovery narrative and deleveraging strategy appear to be the primary investment hooks analysts are promoting. The final day's performance will determine whether the offering reaches full subscription or faces challenges in meeting its capital-raising target. Market participants will be watching the closing numbers closely to assess institutional and retail demand for the issue.

Source: Markets-Economic Times