The initial public offering (IPO) of Midwest received a robust response from investors during its bidding period, with the issue being subscribed over 90 times by the end of Day 3. Strong demand came particularly from institutional investors.
The Midwest IPO, which ran from October 15 to 17, received bids for 27.40 crore shares against the 27.67 lakh shares on offer, resulting in a subscription rate of 92.36 times.
Non-institutional buyers also showed strong interest, with their portion subscribed 176.57 times, as they placed bids for 11.18 crore shares compared with the allotted 6.33 lakh shares. The QIB segment reflected similar enthusiasm, with its portion booked 146.99 times.
The retail quota was subscribed 25.52 times, while the employee portion also saw strong demand, with a subscription of 25.80 times.
Midwest IPO details
The ₹451 crore IPO is a combination of a fresh issue of shares worth ₹250 crore and an offer-for-sale (OFS) of ₹201 crore. Of the fresh issue, ₹130.3 crore will be used for Phase II expansion of its quartz facility under subsidiary Midwest Neostone, ₹25.7 crore for electric dump trucks, and ₹3.2 crore for solar energy integration at select mines.
Additionally, ₹56.2 crore will be used to repay borrowings, with the remainder earmarked for general corporate purposes.
The allotment for the issue is expected to be completed on October 20, with shares scheduled to list on both the NSE and BSE on Friday, October 24.
Midwest grey market premium
According to market sources, the grey market premium (GMP) for the Midwest IPO stands at ₹145 per share as of today, indicating that the shares are likely to list higher than the issue price.
Considering the GMP and the IPO’s upper band issue price of ₹1,065, the stock is expected to debut on the exchange at around ₹1,210, representing a 13.61% premium. The grey market premium reflects the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market.
However, analysts caution that GMP is only an early indicator and should not be the sole factor in making investment decisions.
About Midwest
The company is engaged in the business of exploration, mining, processing, marketing, distribution, and export of natural stones, with an emphasis on sustainability.
The company claims that it is the country’s largest producer and exporter of Black Galaxy Granite (a variety of granite that is sparkling with flakes of a golden hue) and held a share of approximately 64% of the Indian export market for Black Galaxy Granite in fiscal year 2025.
It is also the largest producer of Absolute Black Granite (a variety known for its remarkable surface finish) in India, both of which have high demand.
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