Upcoming IPO: Hyderabad-based Midwest gets SEBI nod to launch ₹650 crore IPO
- Upcoming IPO: Hyderabad's Midwest Ltd has received final SEBI observations for its IPO plans, aiming to raise funds through a new share issue worth ₹250 crore and an OFS of ₹400 crore. The company is a leading exporter of natural stones, particularly Black Galaxy Granite.
Upcoming IPO: Hyderabad-based Midwest Ltd has received the final observations from the Securities and Exchange Board of India (SEBI) regarding its plans to raise funds through an initial public offering (IPO). The company submitted its IPO documentation to SEBI on September 30, 2024.
Midwest Ltd operates in the domains of exploration, mining, processing, marketing, distribution, and export of natural stones. Recent additions to its product line, such as Quartzite and Laza Grey Marble, are being marketed through a B2B2C approach.
It stands as India’s largest producer and exporter of Black Galaxy Granite, a high-end granite variety, and accounted for roughly 23% of the Indian export market for Black Galaxy Granite in Fiscal 2024, as per a CRISIL report included in the DRHP, exporting 48,249 cubic meters during that fiscal year. The company is also one of the leading producers of Absolute Black Granite, which, along with Black Galaxy Granite, enjoys significant market demand.
IPO details
The initial public offering (IPO), which has a face value of ₹5 per equity share, comprises a new share issue of up to ₹250 crore along with an offer for sale (OFS) totaling up to ₹400 crore by Promoter Selling Shareholders. Additionally, the offer includes a reservation for subscription by eligible employees, with a discount being provided for those participating in the employee reservation segment.
The offer for sale is made up of up to ₹360 crore from Mr. Kollareddy Rama Raghava Reddy and up to ₹40 crore from Mr. Guntaka Ravindra Reddy.
The company plans to allocate the net proceeds from the new issue, specifically ₹127.05 crore, to fund capital expenditures at Midwest Neostone Private Limited, its wholly owned subsidiary, for phase II of the quartz grit and powder processing facility; ₹25.75 crore for capital expenditures related to acquiring electric dump trucks for use by the company and APGM, its Material Subsidiary; ₹3.26 crore for capital expenditures aimed at integrating solar energy at certain company mines; ₹53.80 crore for the pre-payment or repayment, partially or fully, of some of the company's and APGM's outstanding debts; and for general corporate purposes.
The book-running lead managers for the offering are DAM Capital Advisors Limited, Intensive Fiscal Services Private Limited, and Motilal Oswal Investment Advisors Limited, while KFin Technologies Limited serves as the issue's registrar.
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