Midwest IPO Day 1: Issue Subscribed 29% So Far; GMP at Rs. 145. Should You Apply?

The initial public offering (IPO) of Midwest Ltd., a Hyderabad-based natural stone manufacturer, opened for subscription on Tuesday, October 15, and has been subscribed 29% so far on Day 1. The IPO has drawn strong retail interest, while institutional investors are yet to make significant bids.

Midwest IPO Subscription Details

According to BSE data, at the press time, Midwest has received 3,82,144 bids against the 31,17,460 shares available for subscription, marking a 29% overall booking.

• Retail investors subscribed to around 17%,

• Non-Institutional Investors (NIIs) also subscribed 17%, and

• The Qualified Institutional Buyers (QIB) portion is yet to receive bids.

Meanwhile, the employee category witnessed strong participation with 43% subscription.

The IPO, with a price band of Rs. 1,014-Rs. 1,065 per share, will close on Thursday, October 17. The company is planning to raise Rs. 451 crore, with Rs. 250 crore by fresh issue and Rs. 201 crore through an offer for sale (OFS).

Midwest IPO GMP and Listing Expectations

As of October 15, the Midwest IPO Grey Market Premium (GMP) is Rs. 145, according to investorgain.com. This indicates that the shares are trading at Rs. 1,210 (Rs. 1,065 + Rs. 145), which is a 13.6% premium on the upper price band in the unlisted market.

Over the past six sessions, the GMP has shown an upward trend, signaling a potentially strong listing next week. The tentative listing date for the IPO on BSE and NSE is October 24, while the allotment is likely to be finalized on October 20.

About Midwest Ltd.

Founded in 1981 and headquartered in Hyderabad, Telangana, Midwest is a leading producer and exporter of Black Galaxy and Absolute Black Granite. It is involved in exploration, mining, processing, marketing, and export of natural stones and is highly focused on sustainability. 

The company holds a 10.8% share of India’s total black granite output as of FY24. It reported a total income of Rs. 643.14 crore in FY25, up from Rs. 603.33 crore in FY24, and PAT rose to Rs. 133.3 crore from Rs. 100.3 crore in the previous year.

Midwest plans to utilize IPO proceeds for plant expansion, purchase of electric dump trucks, loan repayment, and general corporate purposes.

Also Read: LG Electronics India IPO Makes Stellar Debut, Lists 50% Higher

Brokerage View: Neutral Stance

Analysts at SBICAP Securities characterize Midwest as India’s biggest producer of Black Galaxy Granite and have reported strong growth in revenue and earnings. However, they have highlighted that the valuation of the IPO appears premium, as it is trading at a P/E of 35.8x and an EV/EBITDA of 22.4x based on FY25 estimates.

The brokerages have given a "Neutral" rating, indicating that investors should monitor the company's performance after listing before taking new positions.