The positive sentiment stems from strong investor demand, robust financials, and the company’s dominant position in the premium granite export segment.
Strong subscription
The IPO, which was open between October 15 and October 17, saw an overwhelming response, getting subscribed 92.36 times overall. The non-institutional investor (NII) category led the charge with a massive 176.57 times subscription, followed by QIBs at 146.99 times and retail investors at 25.52 times. The company also raised Rs 135 crore from anchor investors ahead of the issue, reflecting strong institutional interest.Analysts said the enthusiasm among investors underscores confidence in India’s natural stone export potential and the company’s expansion into value-added products like quartz processing and solar-integrated mining operations.
About the company
Founded in 1981, Midwest operates 16 granite mines across Telangana and Andhra Pradesh, producing high-value stones such as Black Galaxy, Absolute Black, and Tan Brown.The company exports to 17 countries across five continents, with key markets including China, Italy, and Thailand. It employs over 1,300 personnel and is expanding its operations to include electric dump trucks and solar energy integration at select mines to improve sustainability and efficiency.
Financial performance
Midwest has reported strong and consistent financial growth in recent years. For FY25, the company posted a 7% rise in revenue to Rs 643 crore and a 33% jump in profit to Rs 133 crore, with PAT margins at 17.2% and EBITDA margins at 27.4%. It also maintains healthy leverage levels, with a debt-to-equity ratio of 0.43.
The company’s return on equity (ROE) and return on capital employed (ROCE) stood at 19.4% and 18.8%, respectively — among the best in the sector.
Listing outlook
Given the strong fundamentals, premium product mix, and steady export demand, analysts expect Midwest to make a positive market debut, though valuations appear on the higher side. Post-issue, the company’s P/E multiple stands at about 39x FY25 earnings, which many consider aggressive compared to other listed peers.
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At a GMP of around 10%, the listing is expected to be steady rather than spectacular.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)