Midwest IPO: Price band set at ₹1,014-1,065 per share; check key dates, issue details, more

Midwest IPO price band has been fixed in the range of ₹1,014 to ₹1,065 per equity share of the face value of ₹5. The Midwest IPO date of subscription is scheduled for Wednesday, October 15 and will close on Friday, October 17. The allocation to anchor investors for the Midwest IPO is scheduled to take place on Tuesday, October 14.

The floor price is 202.80 times the face value of the equity shares and the cap price is 213 times the face value of the equity shares. The Midwest IPO lot size is 14 equity shares and in multiples of 14 equity shares thereafter.

Midwest IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved shares aggregating upto 1 crore.

Tentatively, Midwest IPO basis of allotment of shares will be finalised on Monday, October 20 and the company will initiate refunds on Thursday, October 23, while the shares will be credited to the demat account of allottees on the same day following refund. Midwest share price is likely to be listed on BSE and NSE on Friday, October 24.

The company intends to raise ₹250 crore by issuing new shares, while promoters - Kollareddy Rama Raghava Reddy and Guntaka Ravindra Reddy - will be offering shares worth up to ₹201 crore through an offer-for-sale.

The initial size of the IPO has been decreased from ₹650 crore as the company has adjusted its offer-for-sale amount to ₹201 crore from the previously announced ₹400 crore.

The proceeds from the offer-for-sale will go directly to the selling shareholders. The promoters hold 95.83 percent of the company’s shares, with the remaining 4.17 percent owned by SVADHA India Emerging Opportunities Scheme 1.

SVADHA India purchased 14.08 lakh shares (representing a 4.17 percent stake) in Midwest for ₹100 crore at a price of ₹709.80 per share on September 28, 2024.

The Midwest IPO is being managed by DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors. The registrar for the issue is Kfin Technologies Ltd.

The company specializes in the exploration, mining, processing, marketing, distribution, and export of natural stones, with a focus on sustainable practices. We are the largest producer and exporter of Black Galaxy Granite in India, characterized by its glimmering golden flakes, and accounted for approximately 23% of the Indian export market for this granite during Fiscal 2024 (Source: CRISIL Report), exporting 48,249 cubic meters during that fiscal year.

Midwest is also among the largest manufacturers of Absolute Black Granite, recognized for its exceptional surface quality, both of which are in high demand. The production of Absolute Black Granite represented 10.8% of the total black granite output in India in Fiscal 2024.

Currently, the company operates 16 granite mines across six locations in Telangana and Andhra Pradesh, yielding granite varieties such as Black Galaxy, Absolute Black, and Tan Brown, in addition to having one granite processing facility in both Telangana and Andhra Pradesh.

Their clientele, which includes processors and distributors, spans 17 countries across five continents, with China, Italy, and Thailand being the primary markets for exports. Their customers feature MP STENEKO AB (from Sweden), GI-MA STONE SRL (from Italy), Quanzhou Xingguang Stone Co., Ltd. and the Xiamen Group (from China), King Marble and Granite Co. Ltd. (from Thailand), as well as Kodeyalam Stones, Anjanee Exports, and Anjalee Granites Pvt Ltd (from India). Their granite has been featured in notable projects, such as the CSSC Power (Group) Tower in Shanghai, China, and the Shenyang MaoYe Center located in Shenyang, China.

The company's only publicly traded competitor is Pokarna Ltd, which has a P/E ratio of 39.05.

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