Day 1 of the Midwest IPO: The issue has already booked 1.09x. Review the most recent GMP and subscription status. Do you need to apply?

On October 15, the Midwest IPO subscription period will open, with a price range of ₹1,014 to ₹1,065. Anchor investors have contributed ₹135 crore to the company's goal of raising ₹451 crore. Shares are distributed to retail, NII, and QIB investors during the IPO. Today's Midwest IPO GMP is ₹145.

The Telangana-based company's initial public offering, known as the Midwest IPO subscription, will begin on October 15 and run until October 17. For a total of ₹451 crore, the pricing range for the Midwest IPO is set between ₹1,014 and ₹1,065 per share. Today's Midwest IPO GMP is ₹145. According to investorgain.com, this means that the price of Midwest Life's shares is selling at a premium of ₹145 on Wednesday in the grey market.

Prior to its October 14 IPO, Quartz Processor Midwest, known as the top producer of Black Galaxy and Absolute Black granite in India, received ₹135 crore from anchor investors.

Edelweiss Life Insurance Company and Goldman Sachs Funds, more especially the Goldman Sachs India Equity Portfolio, are two notable organizations taking part in the anchor investment.

The Midwest IPO has set aside at least 35% of the shares for retail investors, 15% for non-institutional investors (NII), and 50% for qualified institutional buyers (QIB). Additionally, up to one crore worth of shares are set aside for staff.

The business prioritizes sustainable practices while concentrating on the exploration, mining, processing, marketing, distribution, and export of natural stones. In addition, the Midwest is one of the biggest producers of Absolute Black Granite, which is highly sought-after due to its exceptional surface quality. In Fiscal 2024, 10.8% of India's total black granite production came from the manufacturing of Absolute Black Granite.

Subscription status for the Midwest IPO

On the first day, the Midwest IPO subscription status was 1.06 times. The Qualified Institutional Buyers (QIBs) portion garnered 48% of the bids, while the retail portion was subscribed to 1.02 times and the NII portion was booked 1.93 times. 1.79 subscriptions were made by employees.

According to BSE data, at 14:18 IST, the company received bids for 33,10,902 shares out of the 31,17,460 shares that were up for grabs.

Review of the Midwest IPO

According to SBICAP Securities, the Midwest is India's biggest producer and exporter of Black Galaxy Granite. From FY23 to FY25, the company's revenue, EBITDA, and adjusted PAT grew at a strong CAGR of roughly 11.6%, 38.5%, and 40.5%, reaching ₹626 crore, ₹172 crore, and ₹108 crore, respectively.

Based on post-issue capital, the IPO is priced at an FY25 P/E and EV/EBITDA ratio of 35.8x and 22.4x, respectively, with the upper price band established at ₹1,065. Despite being in a capital-intensive industry, the company's RoE/RoCE ratios are 17.4% and 19.1%, respectively. On the other hand, the issue is valued higher than its peers. The brokerage plans to monitor the company's performance following the listing and continues to hold a NEUTRAL position on the offering.

Details about the Midwest IPO

Kollareddy Rama Raghava Reddy and Guntaka Ravindra Reddy, the company's promoters, would sell shares up to ₹201 crore through an offer-for-sale, while the company intends to raise ₹250 crore by issuing additional shares. The company has changed its offer-for-sale amount from the previously stated ₹400 crore to ₹201 crore, lowering the initial valuation of the IPO from ₹650 crore.

The selling stockholders will receive all proceeds from the offer-for-sale. 95.83 percent of the company's shares are owned by the promoters, with SVADHA India Emerging Opportunities Scheme 1 holding the remaining 4.17 percent.

On September 28, 2024, SVADHA India paid ₹100 crore at a price of ₹709.80 per share for 14.08 lakh shares (or a 4.17 percent ownership) in Midwest. Kfin Technologies Ltd. is the registrar for the offering, and DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors are in charge of the Midwest IPO.

Today's Midwest IPO GMP

Today's Midwest IPO GMP is ₹145. According to investorgain.com, this means that the price of Midwest shares is trading at a premium of ₹145 on Wednesday on the grey market.

The expected listing price of Midwest shares was ₹1,210 per share, which is 13.62% higher than the IPO price of ₹1,065 when taking into account the upper end of the IPO pricing band and the existing premium in the grey market.

The IPO GMP is going upward today, indicating a strong listing is expected, based on the grey market activity over the last six sessions. According to experts, the lowest GMP reported is ₹0.00, and the highest is ₹145.