Offer snapshot
- Structure and size: Total issue about ₹650 crore—fresh issue ₹250 crore plus offer for sale ₹400 crore; mainboard, book‑built, proposed to list on NSE and BSE with standard allocation of QIB up to 50%, NII at least 15%, retail at least 35%.
- Status and timing: SEBI approval noted and DRHP filed; bidding window and price band are yet to be announced across broker trackers and exchange filings.
- Lead managers and registrar: Book‑running lead managers include DAM Capital, Intensive Fiscal Services, and Motilal Oswal Investment Advisors; registrar is KFin Technologies as per tracker pages.
Use of proceeds (fresh issue)
- Phase II quartz processing capex at subsidiary Midwest Neostone: ~₹127.05 crore earmarked to expand quartz grit and powder capacity.
- Electric dump trucks for company and AP Granite (material subsidiary): ~₹25.76 crore for fleet upgrade, improving mine logistics and opex profile.
- Solar integration at select mines: ~₹3.26 crore to offset power costs and improve ESG metrics.
- Debt prepayment/repayment for parent and APGM: ~₹53.80 crore to de‑leverage and reduce finance cost.
Business overview and scale
Founded in 1981, Midwest focuses on natural stone exploration and processing (granite, marble, limestone, travertine) with diversification into mining, including overseas assets; it is among India’s sizable stone exporters with 1,600+ employees and proposed mainboard listing, per company and aggregator summaries. Industry outlook for granite and dimensional stone indicates mid‑single‑digit to high‑single‑digit growth into FY29, with demand from domestic infra and exports supporting capacity additions.
Financials at a glance
- Revenue: ₹525.2 crore (FY22), ₹502.5 crore (FY23), ₹585.6 crore (FY24), indicating recovery and growth into FY24.
- Net profit: ₹67.1 crore (FY22), ₹54.4 crore (FY23), ₹100.3 crore (FY24), with margins improving to ~17.1% in FY24 per tracker tables.
- Balance sheet: Assets ~₹757 crore and borrowings ~₹120 crore as of FY24; net worth ~₹422 crore per third‑party snapshots referencing filings.
- Peer context: Tracker comparisons cite Pokarna as a peer with P/E ~39x and different margin/scale profile; Midwest’s final valuation multiples will hinge on the price band.
What to watch next
- Price band and lot size: Key to assessing valuation vs peers in stones and surfaces; monitor the RHP and broker notes for earnings base and working‑capital cycle assumptions.
- Anchor book quality: Composition and lock‑ins often signal institutional conviction ahead of bidding.
- GMP and subscription: While unofficial, GMP and Day 2 QIB buildup can indicate listing tone; rely more on fundamentals than grey‑market chatter.
FAQs
- What is the Midwest IPO size? About ₹650 crore (₹250 crore fresh + ₹400 crore OFS) per broker and tracker disclosures.
- Is the price band announced? Not yet; investors should wait for the RHP and exchange notices for final terms and dates.
- Where will it list? Proposed on NSE and BSE as a mainboard listing per DRHP and broker pages.
- How will proceeds be used? Phase II quartz plant capex, EV trucks, solar integration, partial debt repayment, and general corporate purposes.
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