Midwest Ltd, a prominent player in India's granite sector, is set to launch its Initial Public Offering (IPO) on October 15, 2025. The company has established a price band of ₹1,014 to ₹1,065 per share for its ₹451 crore IPO, which will remain open for subscription until October 17. The offer comprises a fresh issue of ₹250 crore and an offer-for-sale (OFS) of ₹201 crore by promoters Kollareddy Rama Raghava Reddy and Guntaka Ravindra Reddy. The IPO aims to fund expansion initiatives, including the development of a new quartz processing plant and the acquisition of electric dump trucks. The listing is anticipated on October 24.
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Company Overview
Established in 1981, Midwest Ltd is a Telangana-based company specializing in the exploration, mining, processing, marketing, distribution, and export of natural stones, particularly granite. The company operates 16 granite mines across six locations in Telangana and Andhra Pradesh, producing and exporting Black Galaxy and Absolute Black granite. Midwest Ltd has positioned itself as a leading player in the granite industry, catering to both domestic and international markets.
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IPO Details
Price Band: ₹1,014 to ₹1,065 per equity share (face value of ₹5 each)
Issue Size: ₹451 crore
Fresh Issue: ₹250 crore
Offer for Sale (OFS): ₹201 crore
Subscription Period: October 15 to October 17, 2025
Anchor Investor Allocation: October 14, 2025
Listing Date: October 24, 2025 (on BSE and NSE)
Lot Size: 14 equity shares (minimum investment of ₹14,910 at the upper price band)
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Utilization of IPO Proceeds
The funds raised through the IPO will be allocated as follows:
₹130.3 crore: Capital expenditure for Phase II of the quartz processing plant by subsidiary Midwest Neostone
₹25.7 crore: Purchase of electric dump trucks
₹3.2 crore: Solar energy integration at select mines
₹56.2 crore: Repayment of borrowings
Balance: General corporate purposes
As of June 2025, the company's consolidated borrowings stood at ₹270.1 crore.
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Financial Performance
Midwest Ltd has demonstrated consistent growth in its financial performance:
Revenue:
FY22: ₹525.24 crore
FY23: ₹502.52 crore
FY24: ₹585.62 crore
Profit After Tax (PAT):
FY22: ₹67.09 crore
FY23: ₹54.44 crore
FY24: ₹100.32 crore
Return on Equity (RoE):
FY22: 19.05%
FY23: 13.22%
FY24: 20.1%
Debt:
FY22: ₹96.07 crore
FY23: ₹149.08 crore
FY24: ₹120.48 crore
Net Worth:
FY22: ₹352.25 crore
FY23: ₹411.87 crore
FY24: ₹499.07 crore
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Investment Considerations
Investors should consider the following factors before participating in the IPO:
Industry Position: Midwest Ltd is a leading producer of Black Galaxy and Absolute Black granite, with a strong presence in both domestic and international markets.
Growth Prospects: The planned expansion of the quartz processing plant and the adoption of sustainable practices, such as solar energy integration and the use of electric dump trucks, position the company for future growth.
Financial Stability: The company has demonstrated consistent revenue and profit growth, with a healthy return on equity and a manageable debt profile.
Valuation: The price band of ₹1,014 to ₹1,065 per share reflects a valuation that investors should assess in comparison to industry peers and the company's growth prospects.
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Conclusion
Midwest Ltd's upcoming IPO presents an opportunity for investors to participate in the growth of a leading player in India's granite industry. With a solid financial track record, strategic expansion plans, and a commitment to sustainable practices, the company is well-positioned for future success. Prospective investors should carefully evaluate the investment opportunity, considering both the potential for growth and the associated risks.
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