Midwest IPO Day 1: 59% Subscribed, GMP at ₹145 – Should You Invest?
Midwest IPO Day 1 update: 59% subscribed, GMP at ₹145. Review subscription status, price band, anchor investors, and potential listing gains before applying.
Midwest IPO opens for subscription at ₹1,014–₹1,065 per share, with a grey market premium of ₹145 signaling strong investor interest.
The Midwest IPO opened for subscription on October 15, 2025, with a price band of ₹1,014 to ₹1,065 per share. The Telangana-based natural stone manufacturer aims to raise ₹451 crore, including ₹250 crore via fresh issue and ₹201 crore through offer-for-sale by promoters. Anchor investors contributed ₹135 crore ahead of the public issue.
🏢 About Midwest
Midwest, also known as Quartz Processor Midwest, is one of India’s largest producers of Black Galaxy and Absolute Black granite. The company specializes in exploration, mining, processing, marketing, distribution, and export of natural stones, emphasizing sustainable methods. In FY24, Midwest accounted for 10.8% of India’s total black granite output.
The IPO is structured as follows:
Qualified Institutional Buyers (QIB): 50%
Non-Institutional Investors (NII): 15%
Retail Investors: 35%
Employee Reservation: Up to 1 crore shares
Notable anchor investors include Goldman Sachs India Equity Portfolio and Edelweiss Life Insurance Company.
📈 IPO Subscription Status – Day 1
As of mid-day on October 15, the IPO was 59% subscribed:
Retail investors: 57%
NII: 76%
QIB: Yet to receive bids
Employee portion: 1.06x
A total of 13,95,912 shares were bid against 31,17,460 shares on offer by 12:12 IST, according to BSE data.
💸 Grey Market Premium (GMP)
The Midwest IPO GMP today is ₹145, indicating strong investor demand. Based on this grey market premium, the listing price is estimated around ₹1,210 per share, nearly 13.6% above the upper IPO band. Grey market activity over the past six sessions shows an upward trend, suggesting a positive listing outlook.
📊 Financials and Valuation
Revenue/EBITDA/Adjusted PAT CAGR (FY23–25): 11.6% / 38.5% / 40.5%
FY25 Figures: Revenue ₹626 crore, EBITDA ₹172 crore, PAT ₹108 crore
Valuation at upper price band: P/E 35.8x, EV/EBITDA 22.4x
Return on Equity (RoE): 17.4%
Return on Capital Employed (RoCE): 19.1%
SBICAP Securities notes that Midwest is India’s largest producer and exporter of Black Galaxy Granite. While the IPO is slightly premium compared to peers, the brokerage maintains a NEUTRAL stance, advising investors to monitor post-listing performance.
📝 Promoter & Shareholding Details
Promoters: Kollareddy Rama Raghava Reddy & Guntaka Ravindra Reddy – 95.83%
Other Investors: SVADHA India Emerging Opportunities Scheme 1 – 4.17%
Offer-for-Sale: Reduced from ₹400 crore to ₹201 crore
The funds raised from the offer-for-sale will go entirely to the selling shareholders.
⚖️ Should You Apply?
Given the healthy grey market premium and the company’s strong financials, the Midwest IPO shows potential for a positive listing. However, it operates in a capital-intensive sector, and the issue is priced at a premium. Retail investors should consider risk appetite and consult with certified financial advisors before subscribing.
