Carlyle-backed Varmora eyes a pre-IPO fundraising round of up to $150 mn

Global private equity firm Carlyle Group had invested $100 million to acquire a significant minority stake in Varmora in July 2022, at an undisclosed valuation.
Global private equity firm Carlyle Group had invested $100 million to acquire a significant minority stake in Varmora in July 2022, at an undisclosed valuation.


  • The maker of sanitaryware and tiles is seeking a valuation of around 5,000 crore in the pre-IPO round
  • Carlyle Group is looking sell a part of its stake in Varmora in this round

MUMBAI : Sanitaryware maker Varmora Granito, backed by global private equity firm Carlyle Group, is looking to raise $100-150 million in a pre-public listing round, two people familiar with developments in the company said. 

The mix of primary and secondary fundraise from private equity investors is expected to see the company valued at 5,000 crore (nearly $600 million), the people added. 

“There is significant inbound interest from funds that are willing to invest in the company," said one of the persons cited above.

The Morbi, Gujarat-based company, which is looking to list on Indian bourses in 18-24 months, has seen inbound interest from investors such as GIC and 360 One, among others, the second person said.

“Carlyle is likely to take some money off the table in this (current funding) round, and will also sell partially during the IPO (initial public offering)," this person said. Both the people requested not to be named.

The development underscores the growing investor interest in private companies that are headed for an IPO. Other such as FirstCry, Oyo, Ixigo and Ola Electric have reportedly seen similar interest.

Emailed queries to Varmora Granito did not elicit any response. Spokespersons of Carlyle and 360One declined to comment. GIC, too, did not respond to requests for comment.

The development comes two years after Carlyle invested $100 million to acquire a significant minority stake in the company from the promoters in July 2022, at an undisclosed valuation.  

At that time, Varmora, in a statement, had said it aimed to leverage the strength of the partnership with Carlyle to enhance its investments in brand building and digital marketing, deepen its distribution network, and augment product innovation and capacity.

Also read: Carlyle weighs $1bn IPO in Hexaware

Carlyle has been looking to harvest some of its other investments in the country, too. The PE firm has been reportedly looking to sell part stakes in companies such as Yes Bank, Airtel’s data center business and VLCC, among others.

Creating brand Varmora

Established in 1994 by brothers Naranbhai Varmora and Ramanbhai Varmora, then traders of Mangalorean rooftiles, the company’s product portfolio includes premium tiles, faucets and sanitaryware.

The company has over 200 exclusive brand outlets in India and have marketing and distribution setup in more than 74 countries. 

As per an April 2024 ratings release by Care, in FY23, Varmora group (registered as Varmora Granito) reported year-on-year (y-o-y) growth of 26.61% in its total operating income to 1,342.29 crore compared to 1,058.33 crore in the previous year. It also reported export sales of 264.52 crore in FY23, compared to 198.61 crore the previous year.

The profit before interest, lease rentals, depreciation and taxation (PBILDT) margin and profit after tax (PAT) margin of the group remained largely stable at 10.6% and 4.8% in FY23.

The group reported 32% growth in gross cash accruals of 113.97 crore in FY23, compared to 70.01 crore in FY22. According to the provisional results for 9MFY24, the group has reported total operating income and PBILDT of around 985 crore and 104 crore, the ratings release said.

Post commencement of operations of its newly incorporated subsidiary, Covertek Ceramica Private Limited, in FY22, the group’s installed capacity increased to 32.2 million square metres per annum vitrified and ceramic tiles in FY23, compared to 28.95 million square meters per annum in FY22, and 750,000 pieces per annum for sanitaryware products in FY23. 

Also read: Volatility is here to stay, Carlyle's Amit Jain

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.