Midwest Share Price Updates: Stock ends at ₹1,144.10 apiece on NSE, 7.43% premium to IPO price

Midwest share price ended listing day at ₹1,144.10 on NSE, a 7.43% premium to the IPO price of ₹1,065, and at ₹1,141.10 on BSE, a 7.15% premium.

1. South Coast Infrastructure Development Company of Andhra Pradesh Limited;
2. Midwest Advanced Materials Private Limited;
3. Midwest Energy Private Limited;
4. Midwest Gold Limited;
5. Astral Granite Private Limited;
6. Midwest Quartz Private Limited; and
7. Amaya Smart Technologies Private Limited

The company adopts flexible supply chain models to meet customer and distributor needs, and has delivery capabilities ranging from ex-mine to cost-insurance-freight basis. With a strong network of freight forwarding and shipping agents, Midwest assists customers in shipping products to the desired port and destinations in various countries.

Its presence across the dimensional granite value chain enhances customer value by ensuring consistent volume and quality supply from its mines. The distributor model allows it to maintain inventory levels close to primary consumption markets such as China and Italy. By aggregating consignments under a single charter, Midwest assists distributors secure favorable shipping rates, reducing costs.

Midwest Ltd secured ₹135 crore from anchor investors just one day prior to the commencement of its initial public offering. Notable institutions that took part in the anchor round include Goldman Sachs Funds, Edelweiss Life Insurance Company, Axis Mutual Fund, Kotak Mutual Fund, ITI Mutual Fund, and Svadha India Emerging Opportunities Scheme, as indicated in a circular published on the BSE website.

According to the circular, the company allocated over 12.67 lakh shares to 10 funds at a price of ₹1,065 each.

Midwest had entered into a shareholder’s agreement with BEML Limited in 2005 to form BEML Midwest Limited, a joint venture in which the company held 55% and BEML held 45%. Disputes later arose regarding the JV’s management, leading to multiple legal proceedings, including petitions before the Company Law Board (CLB) and criminal complaints filed by BEML against Midwest’s nominee director, alleging mismanagement and fund siphoning ( ₹11 cr). Midwest also filed a counter-petition alleging diversion of revenue by BEML

As of 1QFY26/FY25, the company’s top 10 customers contributed ~63%/51% to the total revenue. The company’s contracts with top 10 customers typically have a tenure ranging from two years to three years. These agreements with such customers may be terminated by giving no prior notice, and without compensation. Thus, the loss of any of these customers may adversely affect the company’s business.

1) Discrepancy in estimate of quality and quantity of natural stone reserves in mines may impact the business.

2) Significant dependence of revenue on China as it acts as distribution hub for granite industry.

3) Disruption of production at black galaxy granite mines as this segment has major revenue dependence.

Total domestic back granite production stood at 2,877 cubic meters as of FY25, which is expected to grow at a CAGR of 8-11% and reach 4,227-4,848 cubic meters by FY30. Similarly, there is a surge in quartz demand driven by solar glass and engineered stone growth. Midwest plans to add 0.5 mn tonnes of quartz grit capacity for solar glass, meeting 11-13% of FY30 demand. The company operates 3 quartz mines and has 2 additional mines under development.

According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, Midwest Ltd debuted with a steady 9% premium at ₹1,160 and touched a high of ₹1,190, reflecting investor confidence backed by strong QIB participation. The company’s solid financial performance, with revenue rising to ₹626 crore and PAT up 145% to ₹133 crore in FY25—highlights robust growth and margin expansion to 27.4%.

Holding a 64% 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. 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.

Backward integration to support the development of environmentally friendly diamond tools such as Diamond wire used in the cutting and processing of hard materials, for captive as well as industry consumption through manufacturing facility in Hyderabad

1. Quartz
2. Heavy Mineral Sand Mining
3. Laza Grey Marble and Celestia Quartzite
   

As of 1QFY26/FY25, the company derived ~64%/57% of its total revenue from operations from outside India with China contributing to ~55%/40%, which acts as a global distribution hub for the Granite industry. In the Granite industry, a significant portion of the raw material is commonly sent to China for processing before being distributed to the rest of the world.

Any changes in the legal and regulatory environment in China, the diplomatic relationship between India and China, changes in the export or import laws of both countries, instability in the region due to war or natural calamity, etc. could adversely affect the company’s distribution activities.

1. Capitalize on the growing market for Black Galaxy Granite and Absolute Black Granite and build resource base
2. Expand Dimensional Stone products and enter new geographies
3. Diversify revenue through production of Quartz grit and powder
4. Expand into heavy mineral sand mining
5. Growing and augmenting operations in Diamond Wire Segment

India’s granite production rose from 17,193 KT in FY22 to 19,709 KT in FY25, led by Rajasthan, Andhra Pradesh, and Telangana. Growth is expected to continue at 6–7% annually, driven by demand, reaching over 26,000 KT by FY30.

1. High Entry Barriers and Long Timelines Benefit Established Players
2. Emphasis on Innovation and Technological Advancement
3. India's Top Exporter of Black Galaxy Granite

“Strategically, Midwest’s dominant 60%+ share in India’s Black Galaxy exports and integrated mining-to-processing model offer clear cost advantages. Its planned diversification into quartz and diamond-wire segments adds optional growth levers. Key watch points include forex sensitivity, dependency on premium granite demand, and sustainability of margins post-listing. Near term, a positive debut appears likely; over the medium term, performance will hinge on execution discipline and expansion strategy,” said Harshal Dasani, Business Head, INVasset PMS.

1. Discrepancy in estimate of quality and quantity of natural stone reserves in mines may impact the business.
2. Significant dependence of revenue on China as it acts as distribution hub for granite industry.
3. Disruption of production at black galaxy granite mines as this segment has major revenue dependence.

1. India’s largest black galaxy granite producer, with a sustainable competitive edge, driven by a long gestation period.
2. Leveraging end-to-end dimensional granite integration to capture growth opportunities.

Midwest share price made a decent debut on the bourses today. On NSE and BSE Midwest share price opened at ₹1,165 per share, 9.4% higher than the issue price of ₹1,065.

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1. Investment in Midwest Neostone Private Limited, its wholly owned subsidiary, by way of a loan, towards funding capital expenditure for Phase II of the quartz grit and powder processing plant;
2. Capital expenditure for the purchase of electric dump trucks to be used by the company and investment in Andhra Pradesh Granite Private Limited (APGM), its material subsidiary, by way of a loan, for the purchase of electric dump trucks;
3. Capital expenditure for the integration of solar energy at certain mines of the company;
4. Pre-payment/re-payment of, in part or full, certain outstanding borrowings of the company and investment in APGM, by way of a loan, for pre-payment/ re-payment of, in part or full, certain outstanding borrowings of APGM; and
5. General corporate purposes.

The initial public offering of Midwest Ltd, valued at ₹451 crore, achieved a subscription rate of 87.89 times by the bidding's final day on Friday. Over the three-day IPO period, there were bids for 27,39,83,178 shares, compared to the 31,17,460 shares available, as per NSE data.

The segment for non-institutional investors received a remarkable 168.07 times subscription, while the category designated for Qualified Institutional Buyers (QIBs) saw a subscription rate of 139.87 times. The portion allocated for Retail Individual Investors (RIIs) had a subscription rate of 24.26 times.

According to Harshal Dasani, Business Head, INVasset PMS, Midwest’s ₹451-crore IPO ( ₹1,014– ₹1,065 band; lot size 14) comes with strong operating metrics and visible leadership in Black Galaxy granite. FY25 revenue stood around ₹640 crore with PAT of nearly ₹133 crore, while EBITDA margin expanded to about 27%, reflecting healthy cash generation and steady deleveraging. The issue, subscribed nearly 92 times, drew ₹135 crore in anchor demand, and grey-market trends suggest a 9–10% premium to the upper price band on listing.

Midwest IPO GMP today is ₹115. This indicates Midwest share price is trading at a premium of ₹115 in the grey market on Friday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Midwest share price was indicated at ₹1,180 apiece, which is 10.80% higher than the IPO price of ₹1,065.

Analyzing the grey market activities from the past 15 sessions, the current IPO GMP is showing an upward trend, indicating a promising listing. The minimum GMP recorded is ₹0.00, while the maximum GMP reaches ₹175.50, as per expert opinions.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.