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Midwest IPO Day 3: Unlisted shares of Midwest are trading at Rs 1,165 apiece in the grey market, which is a GMP of 9.39% over the upper IPO price, signalling mild listing gains.
Midwest IPO Day 3.
Midwest IPO Day 3: The initial public offering (IPO) of quartz processor Midwest Ltd has been closed today, Friday, October 17. The Rs 451-crore mainboard IPO was opened for public subscription on October 15. On the final day of bidding on Friday, the IPO received a 92.36x subscription, garnering bids for 27,40,31,674 shares as against the 29,67,136 shares on offer.
Its retail category has received a 25.52x subscription, while the NII (non-institutional investor) quota has received a 176.57x subscription. The QIB category received a 146.99x subscription.
Midwest IPO GMP Today
According to market observers, unlisted shares of Midwest Ltd have fallen to Rs 1,165 apiece in the grey market, compared with the upper IPO price of Rs 1,065. It means a grey market premium (GMP) of 9.39%, indicating mild listing gains for investors as of now.
The GMP had stood at nearly 13% in the morning.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The IPO will be listed on both the BSE and the NSE on October 24.
Midwest IPO Price & Lot Size
The price band of the IPO has been fixed in the range of Rs 1,014 to Rs 1,065 apiece. The lot size for the issue is 14. It means a retail investor will have to apply for a minimum 14 shares (a lot) and in multiple thereof. The minimum investment required is Rs 14,910, on the upper price of the IPO.
Midwest IPO: Analysts’ Recommendations
Brokerage notes on the Midwest Granite IPO paint a mixed picture, with some analysts recommending investors to subscribe while others urge caution due to valuation concerns.
Ventura Securities has granted a ‘Subscribe’ rating to the IPO, pointing to the company’s robust global presence across North America, Europe, Africa, and Asia. The brokerage said Midwest’s granite sales volumes have grown steadily, from 91,875 cubic meters in FY23 to 108,892 cubic meters in FY25, and expects the company to maintain its leadership in the processed stone and granite markets.
BP Equities has also given a ‘Subscribe’ rating, highlighting Midwest’s healthy financial performance and growth prospects. The brokerage noted that the company has delivered strong CAGR growth between FY23 and FY25 and is well-positioned to benefit from industry expansion, premium product offerings, and upcoming capacity additions. At a valuation of 27 times FY25 earnings, BP Equities believes the issue offers reasonable long-term potential.
Arihant Capital Markets, however, has advised investors to ‘Avoid’ the issue, citing steep valuations compared to peers. While acknowledging Midwest’s market leadership in the Black Galaxy Granite segment and its diversification into quartz and diamond wire manufacturing, the brokerage said the stock looks significantly overvalued despite its strong fundamentals.
Meanwhile, SBI Securities has taken a ‘Neutral’ stance. It noted that Midwest, India’s largest producer and exporter of Black Galaxy Granite, has posted impressive growth with revenue, EBITDA, and adjusted PAT rising at CAGRs of 11.6%, 38.5%, and 40.5%, respectively, between FY23 and FY25. However, with the IPO priced at a premium valuation, 35.8x FY25 P/E and 22.4x EV/EBITDA, the brokerage prefers to watch the company’s post-listing performance before taking a firm view.
Midwest IPO: More Details
The Rs 451-crore IPO is a combination of a fresh issue of shares worth Rs 250 crore and an offer-for-sale (OFS) of Rs 201 crore.
Of the fresh issue, Rs 130.3 crore will go towards Phase II expansion of its quartz facility under subsidiary Midwest Neostone, Rs 25.7 crore for electric dump trucks, and Rs 3.2 crore for solar energy integration at select mines.
Additionally, Rs 56.2 crore will be used to repay borrowings, with the remainder earmarked for general corporate purposes.
Midwest Ltd has said it has mobilised Rs 135 crore from anchor investors, just a day before its initial share-sale opening for public subscription.
As of June 2025, the company’s consolidated borrowings stood at Rs 270.1 crore.
With over four decades in the natural stone industry, the company has expanded beyond granite into quartz processing through its Phase I plant, catering to the engineered stone and solar glass segments. It is further diversifying into heavy mineral sands exploration as well as the processing of rare earth elements.
Telangana-based Midwest operates 16 granite mines across Telangana and Andhra Pradesh, producing premium Black Galaxy found exclusively in a single village in Andhra Pradesh and Absolute Black granite, both widely used in global real estate projects.
For FY2025, net profit stood at Rs 133.3 crore, while revenue was Rs 626.2 crore.
Midwest is expected to make its stock market debut on October 24.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 17, 2025, 10:14 IST
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