Midwest Limited has launched an Initial Public Offering to raise funds for capital expenditure, repaying loans, and corporate purposes. The IPO comprises a fresh issue of 0.23 crore shares valued at Rs.250 crore and an offer for sale of 0.19 crore shares worth Rs.201 crore, totalling Rs.451 crores.
Midwest Limited’s IPO is scheduled to open on 15th October 2025 and close on 17th October 2025, with shares expected to be listed on the NSE and BSE on 24th October 2025.
Midwest Limited IPO is priced between Rs.1,014 and Rs.1,065 per share, with a lot size of 14 shares. Retail investors can invest a minimum of Rs.14,910 (for 14 shares at the upper price). S-HNI investors must subscribe to at least 14 lots (196 shares), totaling Rs.2,08,740, while B-HNI investors are required to invest a minimum of 68 lots (952 shares), amounting to Rs.10,13,880.
GMP of Midwest Limited IPO
As of 15th October 2025, Midwest Limited’s shares were trading in the grey market at a 13.62 percent premium. The grey market price is Rs.1,210 per share, which is Rs.145 higher than the issue price of Rs.1,065.
Overview of Midwest Limited
Midwest Limited, founded in 1981, is involved in the exploration, mining, processing, marketing, distribution, and export of natural stones. The company is best known for producing and exporting Black Galaxy Granite, a unique variety with shiny golden flakes.
It operates 16 granite mines across six locations in Telangana and Andhra Pradesh, producing several types of granite, including Black Galaxy, Absolute Black, and Tan Brown. The company also runs one granite processing unit in each of these two states, allowing large-scale production and finishing of granite products.
Promoters of Midwest Limited
The promoters of Midwest Limited are Kollareddy Rama Raghava Reddy, Kollareddy Ramachandra, Kukreti Soumya, and Uma Priyadarshini Kollareddy.
Midwest Limited Selling Shareholders
The IPO of Midwest Limited includes an offer for sale, where the promoter Kollareddy Rama Raghava Reddy plans to sell shares worth Rs.1,810.00 million and Guntaka Ravindra Reddy plans to sell Rs.200.00 million.
Lead Managers of Midwest Limited
DAM Capital Advisors Limited, Intensive Fiscal Services Private Limited and Motilal Oswal Investment Advisors Limited are serving as the book-running lead managers for the IPO, while KFin Technologies Limited is acting as the registrar, managing the offer process.
Objectives of the IPO Offer
Midwest Limited plans to use the issue proceeds mainly to fund Midwest Neostone’s Phase II Quartz Processing Plant for 1,270.49 million, purchase Electric Dump Trucks for Rs.257.55 million, integration of solar energy at select mines for Rs.32.56 million, and to repay certain loans for Rs.538 million. The balance is going toward general corporate purposes.
Financial analysis of Midwest Limited
The company’s total income rose from Rs.603.33 crore in FY 2024 to Rs.643.14 crore in FY 2025, showing improved revenue performance. Profit After Tax also rose from Rs.100.32 crore to Rs.133.30 crore, demonstrating higher profitability and operational efficiency. In addition, EBITDA rose from Rs.151.44 crore in 2024 to Rs.171.78 crore in 2025, indicating the company’s strengthened core operations and earning capacity.
Midwest Limited Vs Peers
Pokarna Limited has higher revenue from operations of Rs.930.13 crore, compared to Midwest Limited. Its Net Asset Value per share is also higher at Rs.250.93 compared to Midwest’s Rs.163.75.Pokarna Limited has higher Return on Net Worth of 24.11 percent, while Midwest has 22.11 percent.
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Strengths of Midwest Limited
- Lower manufacturing cost due to operational efficiencies
- Strong distribution network
- Strong R&D, manufacturing technology and backward integration
- High barriers to entry for new players
Weaknesses of Midwest Limited
- Heavy dependence on key customers
- Dependence on international markets and China
Conclusion
Midwest Limited has built a strong competitive position through its operational efficiency, technological lead, and market protection. However, its future growth and stability are subject to significant market concentration and geopolitical risks stemming from its reliance on a small customer base and its deep involvement in international and Chinese markets.
Written by Jhanavi Sivakumar
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