About Midwest Limited - Mainboard IPO
Midwest Limited is India’s largest producer and exporter of Black Galaxy Granite, a premium natural stone variety known for its distinctive golden sparkle. Incorporated in 1981, the company has over four decades of experience in the natural stone industry, specializing in exploration, mining, processing, marketing, and export of granite and other natural stones. The company is headquartered in Telangana and operates 16 granite mines across Telangana and Andhra Pradesh.
Midwest holds a dominant 23% market share in India’s Black Galaxy granite exports as of FY2024 and exports its products to 17 countries across five continents, with key markets in China, Italy, and Thailand. The company has recently diversified into high-value materials like quartz grit, heavy mineral sands, and diamond wire manufacturing.
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IPO Details
Key Information
Details Information
IPO Opening Date- October 15, 2025
IPO Closing Date -October 17, 2025
Listing Date -October 24, 2025
IPO Price Band- ₹1,014 - ₹1,065 per share
Minimum Lot Size -14 shares (about ₹14,910 at highest price)
Issue Size- ₹451 crore (₹250 crore fresh + ₹201 crore OFS)
Face Value- ₹5 per share
Stock Exchanges -BSE and NSE (Mainboard IPO)
Registrar -KFin Technologies Limited CLICK HERE
Book-running Managers -DAM Capital Advisors, Intensive Fiscal Services, Motilal Oswal Investment Advisors
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| Anchor Investor Bidding | October 14, 2025 |
| IPO Opens | October 15, 2025 |
| IPO Closes | October 17, 2025 |
| Allotment Date | October 20, 2025 |
| Refunds/Unsuccessful Bids | October 23, 2025 |
| Shares in Demat Account | October 23, 2025 |
| Listing Date | October 24, 2025 |
What Is the Money Used For?
The funds raised will be used for:
- ₹127.05 crore (50.8%) - Investment in subsidiary Midwest Neostone for Phase II Quartz Processing Plant
- ₹25.76 crore (10.3%) - Purchase of electric dump trucks for sustainable operations
- ₹3.26 crore (1.3%) - Integration of solar energy at select mines
- ₹53.8 crore (21.5%) - Repayment of existing borrowings
- ₹40.13 crore (16.1%) - General corporate purposes
- ₹201 crore (OFS) - Existing shareholders selling their stakes
Key Financials (as per Company Reports and SEBI Filings)
Financial Performance Summary
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) | Q1 FY26 (₹ Cr) |
|---|---|---|---|---|
| Revenue from Operations | 502.52 | 585.62 | 626.18 | 142.27 |
| Total Income | 522.23 | 603.33 | 643.14 | 146.47 |
| Profit After Tax (PAT) | 54.44 | 100.32 | 133.30 | 24.38 |
| EBITDA | 89.59 | 151.44 | 171.78 | 38.97 |
| Total Assets | 656.00 | 757.12 | 1,058.70 | 1,082.81 |
| Net Worth | 334.92 | 421.93 | 553.69 | 577.03 |
| Total Debt | 149.08 | 120.48 | 236.61 | 270.11 |
Financial Analysis Summary
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Consistent Growth: Revenue grew from ₹502 crore (FY23) to ₹626 crore (FY25) - 25% growth over two years.
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Stable Business: Revenue CAGR of 11.7% between FY23-FY25 showing steady expansion.
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Export Focus: Significant portion of revenue from international markets.
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Strong Profit Growth: PAT increased 145% from ₹54 crore to ₹133 crore in two years.
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Expanding Margins: EBITDA margin improved from 17.16% to 27.43%, PAT margin from 10.43% to 20.71%.
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Operational Efficiency: Consistent improvement in profitability metrics.
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Manageable Debt: Debt-to-equity ratio of 0.43 remains within reasonable limits.
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Excellent ROE: Return on equity of 24.07% indicates strong returns to shareholders.
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Efficient ROCE: Return on capital employed of 18.84% shows good capital utilization.
Points of Caution:
- Export dependency: High reliance on international markets creates currency and demand risks.
- Commodity business: Natural stone industry subject to price volatility and economic cycles.
- Environmental regulations: Mining operations subject to strict regulatory oversight.
- High valuation: Analysts flag concerns about premium pricing.
- Competition: Intense competition in natural stone export market.
- Geographic concentration: Operations concentrated in Telangana and Andhra Pradesh.
- Cyclical demand: Construction and infrastructure demand affects granite requirements.
Why Some Investors Like This Mainboard IPO
- Market leader: Dominant position in premium Black Galaxy granite segment.
- Export earnings: Significant forex earnings from 17-country presence.
- Growth diversification: Expansion into higher-margin quartz and diamond wire business.
- Strong fundamentals: Improving margins and return ratios.
- Resource security: Large reserve base for future mining operations.
- Infrastructure growth: Benefits from India’s growing construction and infrastructure sector.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.