The shares of Midwest Limited are set to debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today, October 24, 2025. The initial public offering (IPO) of the granite producer and exporter closed with strong subscription numbers, and experts are signaling a potentially strong debut in the Indian stock market.
Subscription Status and Allotment
The IPO, which was open for subscription from October 15 to October 17, 2025, was oversubscribed 87.89 times on its final day. Investors bid for 273,983,920 shares against the 3,117,460 shares on offer. The share allotment status was finalized on October 20, 2025, and successful bidders had shares credited to their demat accounts on October 23, 2025.
The category for Non-Institutional Investors (NII) was subscribed the most, at 168.07 times. Qualified Institutional Buyers (QIBs) followed with a subscription of 139.87 times, and retail investors subscribed 24.26 times their quota.
Grey Market Premium (GMP)
Ahead of the listing, the grey market premium (GMP) for Midwest IPO is ₹103 per share. This suggests a listing price of ₹1,168 (₹1,065 + ₹103), which is a 9.67% premium over the upper end of the IPO price band. Market observers indicated the GMP reflects a positive sentiment. It is important to note that the GMP is speculative and not an official indicator of listing performance.
IPO Details
Midwest's IPO was a book-built issue valued at ₹451 crore. This included a fresh issue of 0.23 crore shares worth ₹250 crore and an offer for sale (OFS) of 0.19 crore shares worth ₹201 crore. The IPO price band was set at ₹1,014 to ₹1,065 per share, with a lot size of 14 shares. Retail investors needed a minimum investment of ₹14,910 at the upper price band.
Objective of the IPO
Midwest plans to utilize ₹130.3 crore from the IPO proceeds for capital expenditure at its subsidiary, Midwest Neostone, to fund the Phase II Quartz Processing Plant. Approximately ₹25.8 crore is allocated for purchasing electric dump trucks for the company and its subsidiary, APGM. Another ₹3.3 crore will be used to integrate solar energy at select mining sites. The company earmarked ₹56.2 crore for debt repayment, with the remaining funds for general corporate purposes.
Company Overview
Founded in 1981, Midwest Limited is a leading company in the exploration, mining, processing, marketing, distribution, and export of natural stones. It is the largest producer and exporter of Black Galaxy Granite and Absolute Black granite in India. The company has 16 granite mines across Telangana and Andhra Pradesh. Midwest holds approximately 64% share in India’s Black Galaxy Granite exports.
Financial Performance
Midwest has demonstrated consistent financial growth. In FY25, the company reported a 7% rise in revenue to ₹643 crore and a 33% jump in profit to ₹133 crore. The PAT margins stood at 17.2%, and EBITDA margins at 27.4%. The company maintains healthy leverage levels, with a debt-to-equity ratio of 0.43.
Expert Opinions and Concerns
While the IPO has garnered positive responses, some analysts suggest the issue was aggressively priced. At the upper price band, the IPO is valued at a P/E multiple of approximately 39x FY25 earnings, which is considered high compared to its listed peers.
Listing Expectations
Given the strong subscription and GMP, Midwest is expected to have a positive, albeit modest, market debut.
