Midwest IPO GMP Surges As Mainboard Issue Gets Fully Subscribed On Day 1; Check Key Details

The unlisted shares of Midwest Limited have been trading flat on the private market for the last couple of days. The IPO will remain open till October 17.

(Photo source: midwest.in)

Midwest Ltd., a Hyderabad-based natural stone company founded in 1981, launched its Initial Public Offering (IPO) today, October 15. The IPO is a book-built issue valued at Rs 451 crore. This includes a fresh issue of 0.23 crore shares worth Rs 250 crore and an offer for sale (OFS) of 0.19 crore shares worth Rs 201 crore.

Although Midwest Limited's unlisted shares had been trading flat on the private market recently, the Grey Market Premium (GMP) gained on Wednesday. Consequently, private market investors are closely monitoring the price movement.

The IPO was fully subscribed on Day 1, led by demand from non-institutional and retail investors.

Here’s a look at the latest GMP and other key details of the Midwest IPO, including the price band and important dates.

Midwest IPO GMP Today

The Grey Market Premium (GMP) for the Midwest IPO was Rs 170 as of 2:30 p.m. on October 15, marking the highest GMP recorded for the IPO so far. This indicates a potential listing price of Rs 1,235 (Rs 1,065+Rs 170) per share, representing a premium of 15.96% over the upper limit of the price band. Essentially, the unlisted shares of Midwest Limited were trading at Rs 1,235 in the private market. Investors can, therefore, anticipate a potential gain of around 14% when the stock debuts on the market next week.

Midwest IPO: All You Need To Know

The IPO price band is set at Rs 1,014 to Rs 1,065 per share.

The IPO was booked 1.37 times as of 3:20 p.m. on Wednesday.

The lot size is 14 shares. For retail investors, the minimum investment is Rs 14,910 at the upper price band. For small non-institutional investors (sNII), the minimum application is 14 lots (196 shares), requiring Rs 2,08,740. For big non-institutional investors (bNII), it is 68 lots (952 shares), amounting to Rs 10,13,880.

Of the 31,17,460 shares on offer, 8,87,572 shares are reserved for QIBs, 6,65,681 are reserved for NIIs, and 15,53,255 are reserved for RIIs.

Dam Capital Advisors Ltd. is the book-running lead manager, while KFin Technologies Ltd. is the registrar for this issue.

Midwest IPO will remain open till October 17. The allotment status for the IPO is expected to be finalised on October 20, with listing scheduled on BSE and NSE. The tentative listing date for the Midwest IPO is October 24.

Also Read: Midwest IPO Fully Subscribed On Day One: Check Status, Latest GMP

Midwest Ltd. Business And Financials

Founded in 1981 and based in Hyderabad, Midwest is a leading natural stone company. It specialises in mining, processing, and exporting premium granites and quartz materials. Midwest is India’s largest producer and exporter of Black Galaxy Granite.

Midwest Ltd. plans to use the IPO proceeds for capital expenditure, including expansion of its quartz processing plant and purchase of electric dump trucks, among others. A portion of the proceeds will be used to repay borrowings. The remaining funds are meant for general corporate purposes.

For the year ending March 31, Midwest Ltd. reported a total income of Rs 643.14 crore, up from Rs 603.33 crore in the previous year. Profit After Tax (PAT) rose to Rs 133.30 crore compared to Rs 100.32 crore in FY24. Ebitda also increased, reaching Rs 171.78 crore from Rs 151.44 crore the year before.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

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