Midwest IPO Faces Decline as Allotment Date Approaches

Investors have shown robust interest in the Midwest initial public offering (IPO), which took place from October 15 to October 17, 2025. Despite this initial enthusiasm, the grey market premium (GMP) for the shares has diminished significantly as the share allotment date approaches. The finalisation of share allotments is expected on October 20, with the anticipated listing on October 24.

The IPO, valued at Rs 451 crore, comprises a fresh issue of Rs 250 crore and an offer for sale (OFS) of Rs 201 crore. The price band for the shares is set between Rs 1,014 and Rs 1,065 each. Initially, Midwest IPO shares traded at a premium of Rs 175 in the grey market, indicating a potential listing gain of approximately 10.33 percent. However, this premium has now fallen to Rs 111, reflecting a decline of 36.57 percent.

Subscription Rates and Investor Interest

The IPO attracted considerable attention, with an overall subscription rate of 87.89 times the number of shares on offer. Breaking down the categories, qualified institutional buyers (QIBs) subscribed 139.87 times, non-institutional investors (NIIs) 168.07 times, and retail investors 24.26 times. Additionally, the company reserved 10,373 shares for its employees at a discounted price of Rs 101 per share, which represents a 9.5 percent discount to the upper price band. This employee quota was subscribed 24.44 times.

Midwest, established in 1981, specializes in the exploration, mining, processing, marketing, and export of natural stones. Its flagship product, the Black Galaxy Granite, is renowned for its unique golden flakes. The company operates 16 granite mines across six locations in Telangana and Andhra Pradesh, producing various granite types including Black Galaxy, Absolute Black, and Tan Brown. Furthermore, it has developed a resource base across 25 locations in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu for future mining initiatives.

Financial Performance Overview

For the quarter ending June 30, 2025 (Q1 FY26), Midwest reported a total income of Rs 146.47 crore and a profit after tax (PAT) of Rs 24.38 crore. The company’s net worth stood at Rs 577.03 crore with total debt reported at Rs 270.11 crore. Looking at the full financial year FY25, Midwest’s total income increased to Rs 643.14 crore, up from Rs 603.33 crore in FY24 and Rs 522.23 crore in FY23. The PAT also saw a notable rise, climbing to Rs 133.30 crore in FY25, compared to Rs 100.32 crore in FY24 and Rs 54.44 crore in FY23.

As the share allotment date nears, market observers will be keen to see how the Midwest IPO performs upon its listing, especially in light of the recent decline in its grey market premium.