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The Midwest IPO, open from October 15 to 17, has received an overwhelming response from investors.
Day 3 Data Shows Strong Investor Participation
The issue was subscribed 25.22 times, with the retail portion filled 14.67 times, the NII segment oversubscribed a staggering 80.69 times, and the QIB category subscribed 2.21 times, as per BSE data at 11:50 p.m.
GMP Indicates Strong Listing
The IPO’s Grey Market Premium (GMP) surged to ₹175, up from ₹145 yesterday and ₹130 two sessions ago, driven by strong subscription momentum, according to reports.
IPO Details
The IPO aims to raise ₹451 crore through a combination of fresh issuance shares worth ₹250 crore and an offer-for-sale worth ₹201 crore. It is priced between ₹1,014 and ₹1,065 per share. The book-running lead managers for the IPO are DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors, while KFin Technologies serves as the registrar for the issue.
Analyst Recommendation – ‘Apply’
Midwest has a strong global network and over four decades of experience in the natural stone industry. The company is a market leader in Black Galaxy Granite exports, holding a 23% share of India’s exports in FY2024, noted SEBI-registered analyst Aditya Hujband.
Midwest offers a diversified product portfolio catering to construction, renewable energy, and other industries. The company has also strategically diversified into high-value materials, including quartz grit and heavy mineral sands.
However, the company remains heavily reliant on export markets, making it vulnerable to global demand swings. Raw material price volatility can impact margins, while intense competition in the natural stone segment may affect market share, Hujband added.
Company Details
Midwest operates 16 granite mines across Telangana and Andhra Pradesh and runs two modern processing facilities for large-scale cutting, polishing, and finishing. It has also developed a strong resource pipeline with 25 mining locations in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, supporting future growth. Globally, Midwest exports to 17 countries, including China, Italy, and Thailand.
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