Midwest IPO: Issue was subscribed 92.3 times on Day 03; NII, QIB portions see high demand, GMP signals healthy listing

Midwest’s initial public offering (IPO) received a robust response from investors during its bidding period, with the issue oversubscribed more than 90 times by the end of Day 3. Strong demand came especially from institutional investors. The Midwest IPO, which ran from October 15 to 17, received bids for 27.40 crore shares against the 27.67 lakh shares on offer, resulting in a subscription rate of 92.36 times. Non-institutional buyers showed keen interest, with their portion subscribed 176.57 times as they placed bids for 11.18 crore shares compared to the allotted 6.33 lakh shares. The QIB segment reflected similar enthusiasm, with its section booked 146.99 times. The retail quota was subscribed 25.52 times, while the employee section also saw strong demand, with a subscription of 25.80 times. Midwest IPO Details The ₹451 crore IPO is a combination of a fresh issue of shares worth ₹250 crore and an offer for sale (OVS) of ₹201 crore. Of the new outlay, ₹130.3 crore will be used for Phase II expansion of its quartz facility under subsidiary Midwest Neostone, ₹25.7 crore for electric dump trucks and ₹3.2 crore for solar integration at select mines. Midwest IPO Additionally, ₹56.2 crore will be used to repay loans, with the rest earmarked for general corporate purposes. The allotment for the issue is expected to be completed on October 20, with shares scheduled to list on both the NSE and BSE on Friday, October 24. Midwest gray market premium According to market sources, the gray market premium (GMP) for the Midwest IPO stands at ₹145 per share as of today, indicating that the shares are likely to trade higher than the issue price. Considering the GMP and the IPO’s upper band issue price of ₹1,065, the stock is expected to debut on the exchange at around ₹1,210, representing a premium of 13.61%. The gray market premium reflects the expected difference between an IPO’s issue price and its expected listing price in the unofficial market. However, analysts warn that GMP is only an early indicator and should not be the only factor in making investment decisions. About Midwest Midwest is engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones, with an emphasis on sustainability. The company claims to be the country’s largest producer and exporter of Black Galaxy Granite (a variety of granite that sparkles with flakes of a golden hue) and held a share of about 64% of the Indian export market for Black Galaxy Granite in fiscal year 2025. It is also the largest producer of Absolute Black Granite (a variety known for its remarkable surface finish, both of which are in high demand in India). Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to check with certified experts before making any investment decisions.