Midwest IPO Opens October 15: Price Band, Lot Size, Financials, and 10 Key Takeaways from RHP

Mumbai | October 14

The IPO momentum continues. Midwest India Industries Ltd, a four-decade-old natural-stone and engineered-materials producer, is set to test market appetite with a ₹451-crore mainboard issue this week.

The offer opens on Wednesday, October 15, and closes on Friday, October 17. It comprises a fresh issue of ₹250 crore and an offer-for-sale of ₹201 crore. The Midwest IPO price band has been fixed at ₹1,014 – ₹1,065 per share, according to the Red Herring Prospectus (RHP).

Half the offer is reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors (NIIs). Allotment is expected on October 20, with shares credited to demat accounts on October 23, ahead of the October 24 listing on the NSE and BSE.

Interestingly, the grey-market premium (GMP) has been flat, signalling a likely listing near issue price.

Midwest IPO: 10 Key Things to Know from the RHP

1. Promoter Selling Shareholders – The OFS will see promoter-shareholders Kollareddy Rama Raghava Reddy and Guntaka Ravindra Reddy offload part of their stake.
2. Promoter Group and Holding – Promoters Kollareddy Rama Raghava Reddy, Kollareddy Ramachandra, Kukreti Soumya, and Uma Priyadarshini Kollareddy collectively hold 84.58 percent of the company’s pre-offer share capital.
3. Board & Leadership – The six-member board includes three independent directors. Rana Som chairs the board, while Kollareddy Ramachandra serves as CEO.
4. Business Overview – Midwest operates in exploration, mining, processing, and export of natural stones. It is India’s largest producer and exporter of Black Galaxy Granite, commanding about 64 percent of India’s FY25 export market. The company runs 16 operational granite mines across Telangana and Andhra Pradesh, with an additional 25 resource locations identified in southern India.
5. Financial Performance – FY23 revenue: ₹502.5 crore | PAT ₹54.4 crore; FY24 revenue: ₹585.6 crore | PAT ₹100.3 crore; FY25 revenue: ₹626.2 crore | PAT ₹133.3 crore. Profit has grown 2.4× in two years, supported by robust export demand.
6. Objects of the Issue – Proceeds from the fresh issue will fund: Phase II quartz expansion at subsidiary Midwest Neostone Pvt Ltd; Purchase of electric dump trucks for eco-friendly mining; Solar integration at select sites; Pre-payment of loans and general corporate purposes.
7. Peers – Pokarna Ltd is a key listed peer operating in granites and marbles. Midwest functions in a niche industry with limited listed comparables.
8. Industry Outlook – Granite production in India is projected to reach 26,000–27,600 KT by FY30, growing at a 6–7 percent CAGR driven by domestic infrastructure and export demand.
9. Key Internal Risk – One promoter, Kollareddy Rama Raghava Reddy, received a CBI notice in 2015 related to the operations of subsidiary BEML Midwest Ltd. Any regulatory development could affect management focus or reputation.
10. Key External Risk – The company flags macroeconomic volatility and global slowdowns as potential risks that could dampen demand or impact operations.

Bottom Line

The Midwest IPO brings together a legacy mining business and a forward-looking diversification into quartz and sustainable energy. With consistent financial growth, a strong export presence, and new-age capex plans, the company aims to capture India’s infrastructure-driven demand cycle. However, subdued grey-market cues suggest investors should weigh fundamentals over sentiment before subscribing.

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