Private Equity

Liquidity Events

Promoters of ceramic tile seller Varmora buy back 2% stake for Rs.100-Cr from Carlyle

Economic Times  

The promoters of Ahmedabad-based ceramic tile maker Varmora Granito Ltd have repurchased a 2% stake from private equity investor Carlyle Group (specifically, Carlyle Asia Partners Growth - Katsura Investments). This transaction was valued at INR 100 crore, implying a company valuation of approximately INR 5,000 crore (USD 560 million).Following this buyback, Carlyle retains about a 34% stake in Varmora Granito, with the promoters and family holding the remaining shares. Carlyle Asia Partners Growth (Katsura Investments) had initially invested USD 90 million (INR 750 crore at the time) for a minority stake in the company in 2022.Founded in 2003, Varmora Granito manufactures ceramic and vitrified tiles, offering categories such as glazed vitrified, polished vitrified, and ceramic tiles. The company operates a distribution network that includes 286 exclusive brand outlets, over 2,000 multi-brand outlets. In August, Varmora filed papers for a proposed 100% book-built Initial Public Offering (IPO), which will comprise a fresh issue of INR 400 crore and an offer for sale (OFS) of up to 52.4 million shares. The company plans to use the proceeds from the fresh issue primarily for debt reduction.Varmora Granito reported revenue of INR 1,446 crore in FY25, a marginal increase from INR 1,435 crore in FY24. However, its net profit declined to INR 31 crore in FY25 from INR 45 crore in the previous year.

In Aug 2022, Varmora had attracted about USD 80 M from Carlyle.