Granite producer Midwest is one of the popular companies in terms of exploring and developing stone mines, received clearance from SEBI for IPO launching, it has a value of Rs 650, comprising a fresh issue of 250 crores with a face value of Rs 5 each share and an Offer For Sale of up to Rs 400 crore by promoters.
Moreover, 360 Cr shares would be sold by Kollareddy Rama Raghava Reddy and up to Rs 40 crore by Guntaka Ravindra Reddy through the OFS process. If pre- IPO placement occurs, so might company raise 50 crores from it, and the fresh issue size will be reduced.
DAM Capital Advisors, Motilal Oswal Investment Advisors, and Intensive Fiscal Services are the book-running lead managers, while KFin Technologies is assigned as the registrar of the issue. Granite producer Midwest will be listed on the BSE and NSE.
Granite producer Midwest IPO proceeds have been decided to be used below-the-line
- Rs 127.05 crore will be used by Midwest Neostone, the company’s fully-owned subsidiary, for capital expenditure to expand its quartz grit and powder processing plant in the second phase.
- Moreover, in this company, electric dump trucks are also required expanse, so ₹25.75 crore for capital expenditures for that. ₹3.26 crore would used for capital expenditures as they have a goal of integrating solar energy at certain company mines.
- Further, ₹53.80 crore would be used for pre-payment partially or fully, of some of the company’s and APGM’s outstanding debts, while the rest of the money is for general corporate purposes.
Hyderabad Granite Producer Midwest was founded in 1981 and it has 40 years of experience in natural stone along with exploration, development, and making fabrications, sales distributions, and marketing of varied types of natural stone.
nowadays, this company is renowned as India’s first substantial producer of Black Galaxy Granite, and 23% of shares have been allocated Indian export market for Black Galaxy Granite in Fiscal 2024.
As of March 31, 2024, its team of 1,232 people, including 21 electrical specialists, 77 mining experts, 45 production staff, 9 R&D and exploration personnel, and 791 contract workers with an average of 13.75 years of industry experience.
Apart from that, they also transform raw materials such as granite, quartz, and diamond wire tools into high-quality, valuable products for industries around the world.
Midwest IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Midwest Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹539.48 | ₹446.19 | ₹67.09 |
| 2023 | ₹522.23 | ₹443.54 | ₹54.44 |
| 2024 | ₹603.33 | ₹465.53 | ₹100.32 |
Midwest IPO Valuation – FY2024
Midwest IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹29.67 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 22.88% |
| Net Asset Value (NAV): | ₹124.79 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Pokarna Limited | 28.18 | 39.05 | 14.75 | 191.05 | 687.61 Cr. |
Objects of the Issue
- Funding capital expenditure by Midwest Neostone Private Limited (“Midwest Neostone”), our wholly owned subsidiary, towards Phase II of the quartz grit and powder processing plant (the “Phase II Quartz Processing Plant”);
- Capital expenditure for purchase of electric dump trucks (“Electric Dump Trucks”) to be used by our Company and Andhra Pradesh Granite (Midwest) Private Limited (“APGM”), our Material Subsidiary;
- Capital expenditure for integration of solar energy at certain Mines of our Company;
- Pre-payment/re-payment of, in part or full, certain outstanding borrowings of the Company and APGM; and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- DAM Capital Advisors Limited
- Intensive Fiscal Services Private Limited
- Motilal Oswal Investment Advisors Limited
