Midwest IPO opens today: Check GMP, subscription, price band and other details

Midwest, a natural stone mining and exporting player, will open its Rs 451-crore initial public offering (IPO) for subscription on October 15. The book-built issue comprises a fresh share sale worth Rs 250 crore and an offer for sale (OFS) of Rs 201 crore by existing shareholders. The IPO will close on October 17, with the allotment expected on October 20 and listing scheduled for October 24 on both BSE and NSE.

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

Midwest IPO GMP

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

Strong fundamentals, global footprint

Midwest is engaged in the exploration, mining, processing, marketing, and export of granite and natural stones. The company is best known for producing Black Galaxy Granite, a globally popular variety recognized for its distinctive 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 across five continents, with key markets in China, Italy, and Thailand. Some of its marquee clients include GI-MA Stone (Italy), MP STENEKO AB (Sweden), and The Xiamen Group (China).

Financial performance

Midwest has demonstrated consistent growth in recent years. For FY25, it reported a 7% increase in revenue to Rs 643 crore, while profit after tax jumped 33% to Rs 133 crore.The company’s balance sheet also reflects prudent leverage, with a debt-to-equity ratio of 0.43 and a net worth of Rs 554 crore. The market cap, based on the IPO’s upper price band, is estimated at around Rs 3,851 crore.

Use of proceeds

Midwest plans to use the IPO proceeds 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 power systems at select mines, and prepay part of its borrowings.

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