Midwest Limited is coming up with its Initial Public Offering (IPO), opening for subscription on October 15, 2025, and closing on October 17, 2025. The IPO aims to raise ₹451 crores, comprising a fresh issue of ₹250 crores and an offer for sale (OFS) of ₹201 crores. The company operates in the natural stone and granite mining segment, with a strong domestic and international presence. This article provides an in-depth Midwest IPO review and analysis covering company background, strengths, financials, valuation, GMP, reasons to invest, risk factors, and whether investors should consider subscribing.
About Midwest Limited
Incorporated in 1981, Midwest Limited is engaged in the exploration, mining, processing, marketing, and export of natural stones, primarily granite. The company is known for its globally recognized Black Galaxy Granite, sourced from mines in Andhra Pradesh and Telangana.
Midwest operates 16 active mines across six locations, with additional 25 future mining assets identified across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. The company also has granite processing units in Telangana and Andhra Pradesh, enabling large-scale production and export.
Midwest exports to 17 countries across five continents, with major markets in China, Italy, and Thailand.
Competitive Strengths
- Strong Resource Base and Long-term Sustainability
Midwest has access to 41 mining locations (16 operational + 25 identified), ensuring sustained resource supply for decades. - Diversified Product Portfolio
The company produces premium granite varieties such as Black Galaxy, Absolute Black, and Tan Brown, catering to diverse market demands. - Global Export Presence
With exports to 17 countries, Midwest has built strong trade relationships and a stable client base, including industry leaders in China and Europe. - Efficient Operations and Processing Capabilities
Integrated mining and processing facilities enable quality control, timely delivery, and margin efficiency. - Steady Financial Growth
The company’s revenue grew 7% YoY, and PAT surged 33% between FY24 and FY25, showing operational resilience.
Midwest IPO Issue Details
| Particulars | Details |
|---|---|
| IPO Opening Date | October 15, 2025 |
| IPO Closing Date | October 17, 2025 |
| Price Band | ₹1014 to ₹1065 per share |
| Face Value | ₹5 per share |
| Lot Size | 14 shares |
| Minimum Investment (Retail) | ₹14,910 |
| Total Issue Size | ₹451 crore |
| Fresh Issue | ₹250 crore |
| Offer for Sale (OFS) | ₹201 crore |
| Listing at | NSE, BSE |
| Lead Manager | DAM Capital Advisors Ltd. |
| Registrar | KFin Technologies Ltd. |
Midwest Financial Performance
| Particulars | FY2023 | FY2024 | FY2025 | Q1 FY2026 |
|---|---|---|---|---|
| Total Income (₹ Cr) | 522.23 | 603.33 | 643.14 | 146.47 |
| EBITDA (₹ Cr) | 89.59 | 151.44 | 171.78 | 38.97 |
| PAT (₹ Cr) | 54.44 | 100.32 | 133.30 | 24.38 |
| Net Worth (₹ Cr) | 334.92 | 421.93 | 553.69 | 577.03 |
| Debt/Equity | 0.43 | 0.43 | 0.43 | 0.43 |
| ROE | 19.42% | 22.11% | 19.42% | — |
| PAT Margin | 17.17% | 16.62% | 17.17% | — |
Midwest has demonstrated consistent revenue and profit growth with a robust margin profile, supported by operational efficiency.
P/E Ratio Comparison
| Company | P/E Ratio |
|---|---|
| Midwest Ltd (Post IPO) | 39.49x |
| Pokarna Ltd | 22.3x |
| Aro Granite Industries Ltd | 18.5x |
| HMG Granites Ltd | 26.1x |
| Industry Average | 27x |
Midwest IPO appears over-priced at a P/E of 39.5x, higher than the industry average of 27x. However, its strong export exposure and profitability may justify a premium.
Objects of the IPO
- Phase II Quartz Processing Plant Expansion – ₹1,270.49 million
- Purchase of Electric Dump Trucks – ₹257.55 million
- Integration of Solar Energy at Mines – ₹32.56 million
- Repayment of Borrowings – ₹538 million
- General Corporate Purposes – Balance amount
Reasons to Invest in Midwest IPO
1. Expanding Quartz Segment
The company’s Phase II Quartz Processing Plant is expected to double production capacity, tapping into rising demand from solar glass and engineered stone industries.
2. Strong Export Market Base
Long-term contracts and presence in 17 countries reduce domestic market dependency and enhance revenue stability.
3. Strategic Resource Strength
Ownership and control of key granite quarries in South India provide raw material security, cost advantage, and supply chain reliability.
4. Operational Efficiency
Backward integration from mining to processing ensures better control over costs, quality, and delivery schedules.
5. Debt Reduction and Solar Integration
Debt repayment and planned solar integration are expected to improve margins and sustainability metrics.
Risk Factors in Midwest IPO
As per the Midwest IPO RHP filed with SEBI, below are the major risk factors indicated.
1. Dependence on Real Estate and Export Demand
Granite and quartz demand is cyclical and heavily linked to construction, housing, and export markets. Any slowdown could affect earnings.
2. Commodity Price and FX Volatility
Fluctuations in granite and quartz prices or foreign exchange rates could impact profitability, as 60% of revenue is export-driven.
3. Regulatory and Environmental Risks
Mining operations are subject to stringent environmental clearances and state mining regulations. Any non-compliance could halt operations.
4. Customer Concentration
Top five customers contribute over 45% of export revenue. Loss of major clients could affect growth.
5. High Valuation
The IPO is priced at a premium to peers, leaving limited room for listing gains if market sentiment weakens.
How to Apply for Midwest IPO
Investors can apply through ASBA using net banking or UPI-based applications via brokers such as Zerodha, Groww, Angel One, or Upstox.
Steps:
- Log in to your demat-enabled broker account.
- Select IPO > Midwest Limited.
- Choose bid quantity and price (or select cutoff price).
- Confirm UPI mandate.
Grey Market Premium (GMP)
As of the latest update (October 10, 2025), Midwest IPO GMP stands at around ₹150–₹180 per share, indicating moderate listing interest in the grey market.
This suggests possible listing gains of 14–16% over the upper price band of ₹1065 per share, subject to subscription demand.
Conclusion – Should You Invest in Midwest IPO?
Midwest Limited presents a strong fundamentals-driven IPO backed by healthy financials, global export presence, and expansion-driven growth plans. However, valuation appears on the higher side compared to peers, and the sector is cyclical in nature.
✔ Positive factors:
- Consistent growth and profitability
- Strong export base
- Low debt and efficient operations
- Long-term resource visibility
⚠ Cautionary factors:
- High valuation vs peers
- Demand dependency on real estate/export markets
Conclusion: Midwest IPO is suitable for investors with a medium-to-long-term perspective. Short-term investors may see limited listing gains due to premium pricing who can wait and invest post listing if available at discounted price.
FAQs – Midwest IPO
1. What is the Midwest IPO price band?
₹1014 to ₹1065 per share.
2. What is the Midwest IPO lot size?
14 shares per lot.
3. What are Midwest IPO dates?
Opens on October 15, 2025, and closes on October 17, 2025.
4. When will Midwest IPO shares list?
Tentatively on October 24, 2025, on NSE and BSE.
5. What is the GMP for Midwest IPO?
₹150–₹180 per share (as of Oct 10, 2025).
6. What is the minimum investment for retail investors?
₹14,910 for one lot.
7. Should you subscribe to Midwest IPO?
Yes, if you have a medium-term view and believe in export-led growth potential.
Disclaimer: This article is for educational and informational purposes only and not a solicitation to invest. Investors should review the Red Herring Prospectus (RHP) and consult financial advisors before investing.
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