Midwest Limited's ₹451 crore IPO from Telangana has received an overwhelming response from investors. On the second day, the issue was subscribed 6.34 times. Shares are trading at a premium of over 16 percent in the grey market, indicating robust returns upon listing. Allotment will take place on October 20, and listing on October 24.
Midwest IPO: Mineral processing company Midwest Limited's ₹451 crore IPO is receiving an overwhelming response from investors. By October 16, the second day, this IPO had been subscribed 6.34 times. Non-institutional investors subscribed 16.68 times, and retail investors subscribed 5.21 times. The IPO's price band has been set at ₹1,014–₹1,065. Shares are trading at a premium of over 16 percent in the grey market, indicating good returns on the October 24 listing.
Strong Demand from Day One
As soon as the IPO bidding opened, investors showed immense interest. On the very first day, the shares were fully subscribed within a few hours of bidding commencement. According to NSE data, bids were received for a total of 1.97 crore shares against the 31.17 lakh shares offered.
Subscription Details are as follows:
- Non-Institutional Investors (NII): 16.68 times
- Retail Individual Investors (RII): 5.21 times
- Qualified Institutional Buyers (QIB): 57 percent
Additionally, ₹135 crore has been raised from anchor investors even before the bidding opened for the public.
Midwest Limited Company Profile
Midwest Limited is a Telangana-based company with over four decades of experience in the natural stone industry. The company is now expanding beyond granite into quartz processing and the processing segment of Rare Earth Elements.
The company operates 16 granite mines in Telangana and Andhra Pradesh. These mines specifically produce premium Black Galaxy and Absolute Black granite, which are extensively used in global real estate projects.
Out of the funds raised from the IPO, ₹56.2 crore will be used for debt repayment, while the remaining amount will be allocated for general corporate purposes.
Listing Indications from Grey Market Premium (GMP)
There is considerable enthusiasm for Midwest IPO shares in the grey market as well. According to various platforms, the company's shares are trading at a premium of over 16 percent in the unlisted market.
Investorgain has reported Midwest IPO's GMP at ₹180, indicating a 16.9 percent listing gain. Investors expect the shares to open bly on the IPO listing day, providing early gains.
IPO Timeline and Allotment
The allotment for Midwest IPO is likely to take place on October 20, with the shares slated for listing on October 24. This follows b investor interest and a significant grey market premium, both indicating a potentially b performance upon listing.
