Early Response to Midwest’s Market Debut
Midwest Ltd., a quartz processor based in Telangana, launched its initial public offering (IPO) on October 15. By 11:26 AM on the first day of bidding, the issue had been subscribed to 31% of the total offering, as per data from the National Stock Exchange (NSE). This modest start indicates a wait-and-watch approach from investors, especially institutional buyers.
Subscription Breakdown by Investor Categories
The IPO witnessed varied levels of participation from different investor categories:
- Qualified Institutional Buyers (QIBs): No bids recorded as of yet
- Non-Institutional Investors (NIIs): Subscribed 47%
- Retail Investors: Subscribed 41%
- Total Subscription: 31%
IPO Details: Price Band, Lot Size & Issue Structure
Midwest’s IPO, valued at ₹451 crore, comprises both a fresh issue and an offer for sale (OFS):
- Price Band: ₹1,014 to ₹1,065 per equity share
- Lot Size: 14 shares per lot
- Issue Close Date: October 17
- Fresh Issue: ₹250 crore
- Offer for Sale: ₹201 crore (by promoters Guntaka Ravindra Reddy and Kollareddy Rama Raghava Reddy)
Utilization of IPO Proceeds
The company plans to utilize the net proceeds from the fresh issue for a range of strategic and operational needs, including:
- Phase II expansion of its quartz manufacturing plant under subsidiary Midwest Neostone
- Purchase of electric dump trucks to modernize logistics
- Integration of solar energy solutions at select mining locations
- Debt repayment
- General corporate purposes
Anchor Investment Secured Ahead of Launch
Prior to the public offering, Midwest secured ₹135 crore from anchor investors. High-profile institutional players like Goldman Sachs Funds, Edelweiss Life Insurance, Axis Mutual Fund, Svadha India Emerging Opportunities Scheme, Kotak MF, and ITI MF participated in this pre-IPO placement.
In total, the company allotted over 12.67 lakh equity shares at ₹1,065 per share to these 10 anchor investors, as disclosed in a BSE circular.
Company Background: Natural Stone Pioneer
Midwest Ltd. operates in the field of natural stone mining and processing. With 16 operational granite mines spread across Andhra Pradesh and Telangana, the company is especially known for two premium varieties:
- Black Galaxy Granite: Exclusively found in a single village in Andhra Pradesh
- Absolute Black Granite: Widely used in global architectural and real estate projects
The company’s expertise spans exploration, development, stone processing, distribution, and international marketing, making it a significant player in the global natural stone market.
Expected Listing and Grey Market Buzz
Midwest shares are expected to be listed on Indian stock exchanges on October 24. Meanwhile, in the grey market, the company’s unlisted shares are trading at around ₹1,210, reflecting a grey market premium (GMP) of ₹145 or 13.62% over the upper end of the IPO price band.
