Midwest shares made a decent stock market debut on Friday, listing at over 9 percent premium over its initial public offering (IPO) price on the National Stock Exchange (NSE).
The shares of Midwest were listed at Rs 1,165 per share on the NSE, marking a premium of 9.39 percent. After the debut, the shares dropped nearly 2 percent to close at Rs 1,144.10 apiece on its debut day. The stock is still more than 7.4 percent higher that its IPO price of Rs 1,065 apiece.
On the BSE, the shares of the company were listed at Rs 1165.10 apiece, a premium of 9.39 percent. The company's market capitlization at the end of its debut day stood at Rs 4,137.16-crore.
The issue was open for public subscription in the primary market between October 15-17, garnering 87.89 times subscription. The 451-crore issue had a price band of Rs 1,014-1,065 per share.
Midwest IPO share market debut was better than the expectations in the grey market, which had anticipated a listing gain of around 11 percent. Earlier, the Quartz processor mobilised Rs 135 crore from anchor investors.
Of the fresh issue, Rs 130.3 crore will go towards Phase II expansion of its quartz facility under subsidiary Midwest Neostone, Rs 25.7 crore for electric dump trucks, and Rs 3.2 crore for solar energy integration at select mines.
Additionally, Rs 56.2 crore will be used to repay borrowings, with the remainder earmarked for general corporate purposes.
With over four decades in the natural stone industry, the company has expanded beyond granite into quartz processing through its Phase I plant, catering to the engineered stone and solar glass segments. It is further diversifying into heavy mineral sands exploration as well as the processing of rare earth elements.
Telangana-based Midwest operates 16 granite mines across Telangana and Andhra Pradesh, producing premium Black Galaxy found exclusively in a single village in Andhra Pradesh and Absolute Black granite, both widely used in global real estate projects.
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Midwest, which has 20 mining leases and five processing units across India, gets 96 percent of its revenue from natural stone sales. Ventura Securities noted that the company has secured licenses to mine rare earth minerals, adding further potential to its growth prospects. It further said that the company also has plans for a quartz processing plant, which could make it a major player in the solar and semiconductor industries.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, meanwhile said that the decent stock market debut reflects investor confidence backed by strong QIB participation. "The company’s solid financial performance, with revenue rising to Rs 626 crore and PAT up 145 percent to Rs 133 crore in FY25—highlights robust growth and margin expansion to 27.4 percent. Holding a 64 percent share in India's Black Galaxy Granite exports and expanding into quartz production, Midwest is well-positioned for its next growth phase. Its focus on renewable energy and sustainability strengthens its global appeal," he said.
"Despite trading at a premium valuation of ~27x FY25 earnings versus peers, its superior profitability and resource control justify the pricing. Overall, the firm listing and strong fundamentals suggest healthy long-term prospects," he added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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