The Initial Public Offering (IPO) of Midwest Ltd is closing today, Friday, October 17.
The Rs 451-crore IPO opened on October 15 and has already seen strong investor interest, with over 14 times subscription till 10:05 am on the final day.
Total bids received: 4,17,96,398 shares
Shares on offer: 29,67,136
The IPO’s retail category saw a 9.37x subscription, NII (non-institutional investors) 41.35x, and QIB (qualified institutional buyers) 1.94x.
Grey Market Signals Potential Gains
Unlisted shares of Midwest Ltd are trading at Rs 1,210 in the grey market, above the IPO upper price of Rs 1,065.
This reflects a grey market premium (GMP) of 13.62%, suggesting potential listing gains.
The IPO is set to list on BSE and NSE on October 24.
IPO Price and Lot Size
Price band: Rs 1,014–1,065 per share
Lot size: 14 shares
Minimum investment: Rs 14,910 (at upper price)
Investors need to apply in multiples of the lot size.
Should You Apply?
Analyst opinions on the Midwest IPO are mixed:
Ventura Securities: ‘Subscribe’ – cites strong global presence and consistent growth in granite sales.
BP Equities: ‘Subscribe’ – highlights healthy financial performance and growth prospects at reasonable valuation.
Arihant Capital Markets: ‘Avoid’ – warns of high valuations despite strong fundamentals.
SBI Securities: ‘Neutral’ – impressed by growth but cautious due to premium pricing.
IPO Details and Fund Utilisation
The Rs 451-crore IPO is a combination of:
Fresh issue: Rs 250 crore
Offer-for-sale (OFS): Rs 201 crore
Fresh issue proceeds will fund:
Phase II expansion of Midwest Neostone quartz facility – Rs 130.3 crore
Electric dump trucks – Rs 25.7 crore
Solar energy integration at select mines – Rs 3.2 crore
Repayment of borrowings – Rs 56.2 crore
Remaining for general corporate purposes
The company has also raised Rs 135 crore from anchor investors prior to the public offering.
About Midwest Ltd
Telangana-based company operating 16 granite mines across Telangana and Andhra Pradesh
Produces Black Galaxy (exclusive to a single Andhra Pradesh village) and Absolute Black granite
Expanding into quartz processing, engineered stone, solar glass, and rare earth elements
FY25 financials: Revenue: Rs 626.2 crore, Net profit: Rs 133.3 crore
With over 40 years in the natural stone industry, Midwest Ltd is a major player in both domestic and international markets.
Key Takeaways
IPO closes today, October 17; listing on October 24
Strong subscription indicates high investor interest
Grey market suggests potential listing gains
Investors should weigh valuation and growth prospects before applying
