Midwest Limited has announced a price band for its upcoming ₹451 crore initial public offering (IPO), fixing the per-share range at ₹1,014 to ₹1,065 (face value ₹5).
The IPO opens for subscription on October 15 and will close on October 17. The anchor allocation is slated for October 14.
At the floor price, the issue is priced at 202.8× face value; at the cap, it equates to 213×.
Based on diluted earnings per share for FY25, the implied price-to-earnings (P/E) multiple is between 25.72× (lower band) and 27.02× (upper band), considerably above the industry average P/E of 12.73× for FY25 peers.
The net offer will see 50% allocated to Qualified Institutional Buyers (QIBs), with 15% for non-institutional investors and 35% for retail investors. There is also an employee reservation tranche for shares worth up to ₹1 crore.
The share allotment is expected on October 20, followed by refunds or unblocking of funds for unsuccessful bidders, with successful bidders’ shares being credited to their Demat accounts on October 23. The shares are expected to begin trading on the stock exchanges on October 24.
Out of the total IPO, Midwest aims to raise ₹250 crore through fresh issuance, while the promoters (Kollareddy Rama Raghava Reddy and Guntaka Ravindra Reddy) will offer ₹201 crore worth of shares via offer-for-sale.
Earlier, the offer-for-sale portion was proposed at ₹400 crore but has now been scaled down.
The promoters currently hold about 95.83% of the company, with 4.17% held by SVADHA India Emerging Opportunities Scheme 1.
The IPO is being managed by lead book-running managers DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors. The registrar for the issue is KFin Technologies.
Midwest, primarily a quartz processor supplying to the solar glass and engineered stone markets, is also the largest producer of Black Galaxy and Absolute Black granite in India. The company has additionally diversified into heavy mineral sand (e.g., rutile, ilmenite) and rare earth elements processing, and is focused on sustainable operations.
Reference is taken from here