Midwest IPO: Nine investors acquire Rs 135 crore worth shares via anchor book ahead of issue opening

Midwest IPO News

Black Galaxy granite producer and exporter Midwest has raised Rs 135 crore from nine anchor investors on October 14, a day before the IPO opening for public subscription.

The company approached capital markets to raise Rs 451 crore through initial public offering (IPO), which comprises fresh issuance of shares worth Rs 250 crore and an offer-for-sale of Rs 201 crore worth shares by promoters.

The price band for the offer, which opens for public bidding during October 15-17, has been fixed at Rs 1,014-1,065 per share.

Midwest has finalised allocation of 12,67,605 equity shares to anchor investors at the upper price band, as per the filing to exchanges. "Out of the total allocation, 6.1 lakh shares were allocated to four domestic mutual funds," the company said.

Goldman Sachs and Axis Mutual Fund were the largest investors in the anchor book, each picking 3.28 lakh shares for Rs 35 crore, followed by ABSL Umbrella Ucits Funds which acquired 1.4 lakh shares for Rs 15 crore.

Click Here To Read All IPO News

Sun Life Aditya Birla India Fund, Kotak Mahindra AMC, Edelweiss MF, ITI Mutual Fund, Edelweiss Life Insurance Company, and Swadha India were other buyers in the company via anchor book.

Midwest, which is valued at Rs 3,851 crore, intends to utilise Rs 130.2 crore of fresh issue proceeds for investment in Midwest Neostone for Phase II of the quartz grit and powder processing plant, and Rs 25.7 crore for purchase of electric dump trucks.

Further, Rs 3.2 crore will be used for integration of solar energy at certain mines, Rs 56.2 crore for repaying debt, and remainder funds for general corporate purposes.

Midwest involves in extracting and processing dimensional granite, particularly the Black Galaxy and Absolute Black varieties. It also manufactures diamond wire, which is a precision cutting tool employed in the natural stone and construction industries to size stones and other hard substances.

DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors are acting as the merchant bankers for the Midwest IPO.