The grey market premium (GMP) has seen a slight dip to 12.7%, down from 13.5% earlier, suggesting a modest decline in investor enthusiasm. Despite this, the GMP remains significantly above the issue price of Rs 1,065 per share.
The IPO includes a fresh issue of Rs 250 crore along with an offer for sale (OFS) of Rs 201 crore by existing shareholders. Share allotment is expected on October 20, with Midwest scheduled to list on both the BSE and NSE on October 24.
Midwest IPO Subscription Status
By the close of Day 2, the Midwest IPO was subscribed 11.73 times overall.
Retail Individual Investors (RIIs) showed solid interest, subscribing 8.19 times their quota with bids for approximately 15.53 lakh shares.
Non-Institutional Investors (NIIs) demonstrated robust demand, oversubscribing their portion by 33.20 times with bids totaling 6.56 lakh shares.
Qualified Institutional Buyers (QIBs) subscribed 1.84 times their allocated 8.87 lakh shares.
Midwest IPO GMP Update: Positive Market Sentiment
The grey market premium (GMP) for the Midwest IPO currently stands at around 12.7% above the issue price of Rs 1,065 per share. This points to a potential listing price close to Rs 1,200, indicating strong investor enthusiasm and an optimistic market outlook ahead of the stock’s official debut.
Midwest IPO Snapshot
The IPO price band is set between Rs 1,014 and Rs 1,065 per share. Investors can apply for a minimum of one lot (14 shares), amounting to Rs 14,910 at the upper end. Retail investors may apply for up to 13 lots (182 shares), with a maximum investment of approximately Rs 1.94 lakh.
DAM Capital Advisors is acting as the book-running lead manager, while KFin Technologies is the registrar for the issue.
Strong Fundamentals and Global Presence
Midwest operates across the value chain—exploration, mining, processing, marketing, and export—of granite and other natural stones. It is best known for Black Galaxy Granite, a globally recognized variety known for its distinctive golden shimmer.
The company manages 16 granite mines across Telangana and Andhra Pradesh, supported by two large-scale processing units—one in each state.
Midwest exports its products to 17 countries across five continents, with major markets including China, Italy, and Thailand. Its global clientele includes prominent names such as GI-MA Stone (Italy), MP STENEKO AB (Sweden), and The Xiamen Group (China).
Financial Highlights
Midwest has reported consistent financial growth. In FY25, revenue rose by 7% to Rs 643 crore, while profit after tax jumped 33% to Rs 133 crore.
The company maintains a healthy balance sheet, with a conservative debt-to-equity ratio of 0.43 and a net worth of Rs 554 crore. Based on the upper end of the price band, Midwest’s market capitalization is pegged at around Rs 3,851 crore.
Planned Use of IPO Proceeds
The funds raised through the IPO will primarily support expansion initiatives. A key portion is earmarked for Midwest’s wholly owned subsidiary, Midwest Neostone, to develop Phase II of its Quartz Processing Plant.
Additional funds will be used to purchase electric dump trucks to improve sustainability, install solar power systems at select mine sites, and prepay a portion of existing debt.
Should You Subscribe to the Midwest IPO?
SBI Securities highlights Midwest as India’s largest producer and exporter of Black Galaxy Granite, with strong financial growth: revenue, EBITDA, and PAT grew at a CAGR of 11.6%, 38.5%, and 40.5% respectively between FY23 and FY25.
At the upper price band of Rs 1,065, the IPO is valued at a FY25 P/E of 35.8x and EV/EBITDA of 22.4x. Despite strong returns (RoE: 17.4%, RoCE: 19.1%), the issue appears priced at a premium versus peers. SBI Securities gives a NEUTRAL rating, advising investors to wait and watch post-listing.
BP Equities, on the other hand, is more optimistic. Backed by strong fundamentals, rising global demand, and expansion plans, Midwest is seen as well-positioned for future growth. With FY25 P/E at a more reasonable 27.0x (based on projections), BP Equities gives the IPO a SUBSCRIBE rating.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)