Midwest Shares List At 9.39% Premium On NSE Today: Should You Buy, Hold Or Sell? | Markets News

Midwest shares make market debut today.

Midwest IPO Share Price: Shares of quartz processor Midwest made a strong debut today, October 24 at Rs 1,165 apiece on NSE, reflecting a premium of 9.39 per cent. 

Following the listing at 10:00 am, shares surged to Rs 1,176 apiece with a gain of 10.77 per cent.

The Rs 451-crore mainboard initial public offering (IPO) of quartz processor Midwest, which was open between October 15 and October 17, received a strong 92.36x subscription, garnering bids for 27,40,31,674 shares as against the 29,67,136 shares on offer. Its retail category 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 Share: Should You Buy, Sell Or Hold?

Analysts highlight Midwest’s integrated mine-to-market model and long-term mining rights as providing a durable competitive edge in a largely fragmented natural stone sector. BP Equities noted that the company’s leadership position, 40-year operational track record, and expansion into engineered stone and green energy solutions make it a strong player in the premium granite space.

Financially, Midwest reported steady growth, with revenues rising to Rs 626 crore in FY25 from Rs 502 crore in FY23, while net profit jumped 145% to Rs 133 crore during the same period. Its EBITDA margin stood at 27%, supported by cost efficiency and strong export realizations. Return on equity (ROE) was 19.4%, and return on capital employed (ROCE) was 18.8%, reflecting healthy profitability metrics.

At the upper end of the price band, the stock is valued at 27 times FY25 earnings, which analysts consider justified given its market dominance and growth visibility. “Given its leadership in the Black Galaxy segment, global reach, and clean balance sheet, Midwest offers a solid medium- to long-term play on India’s growing natural stone exports,” BP Equities noted.

Gaurav Garg, Research Analyst at Lemonn Markets Desk noted that Midwest Ltd debuted with a steady 9% premium at ₹1,160 and touched a high of ₹1,190, reflecting investor confidence backed by strong QIB participation. The company’s solid financial performance, with revenue rising to ₹626 crore and PAT up 145% to ₹133 crore in FY25—highlights robust growth and margin expansion to 27.4%. Holding a 64% share in India’s Black Galaxy Granite exports and expanding into quartz production, Midwest is well-positioned for its next growth phase. Its focus on renewable energy and sustainability strengthens its global appeal. Despite trading at a premium valuation of ~27x FY25 earnings versus peers, its superior profitability and resource control justify the pricing. Overall, the firm listing and strong fundamentals suggest healthy long-term prospects.

Midwest IPO: More Details

The Rs 451-crore IPO was 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.

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.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.