Midwest IPO starts today: check GMP, plan, price range and other details

Midwest, a player that mines and exports natural stones, will open its initial public offering (IPO) worth Rs 451 crore for subscription on October 15. The book-built issue includes a fresh share sale worth Rs 250 crore and an offer for sale (OFS) of Rs 201 crore by existing shareholders. The IPO will be completed on October 17, allotment is expected on October 20 and listing is scheduled for October 24 on both BSE and NSE.

The price band for the Midwest IPO has been set between Rs 1,014 and Rs 1,065 per share, and investors can bid for a minimum of 14 shares, which works out to Rs 14,910 at the top end of the price band. Retail investors can apply for up to 13 lots (182 shares) worth Rs 1.94 lakh. DAM Capital Advisors is the lead manager and KFin Technologies is the registrar of the issue.

Midwest IPO GMP

The gray market premium (GMP) for the IPO in the Midwest is currently 1%, indicating cautious optimism among investors ahead of its debut.

Strong foundations, global footprint

Midwest is engaged in the exploration, mining, processing, marketing and export of granite and natural stone. The company is best known for producing Black Galaxy Granite, a globally popular variety known for its signature golden sparkle. Midwest operates 16 granite mines across Telangana and Andhra Pradesh, supported by two large-scale processing facilities – one in each state.

The company exports its products to 17 countries on five continents, with major markets in China, Italy and Thailand. Major customers include GI-MA Stone (Italy), MP STENEKO AB (Sweden) and The Xiamen Group (China).

Financial performance

Midwest has shown consistent growth in recent years. For FY25, it reported a 7% increase in revenue to Rs 643 crore, while profit after tax rose 33% to Rs 133 crore.

The company’s balance sheet also reflects a prudent debt load, with a debt-to-equity ratio of 0.43 and a net worth of Rs 554 crore. The market capitalization, based on the highest price band of the IPO, is estimated at around Rs 3,851 crore.

Use of proceeds

Midwest plans to use the proceeds from the IPO primarily for expansion. A portion of the funds will be invested in its wholly owned subsidiary, Midwest Neostone, for the Phase II Quartz Processing Plant. The company will also purchase electric dump trucks to improve sustainability, integrate solar energy systems in select mines and pay off some of its loans early.

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