Midwest IPO opens Oct 15; analysts flag high valuation: Should you apply?

Midwest aims to raise ₹451 crore through its maiden public issue, comprising a fresh issue of 2.3 million equity shares and an offer for sale of 1.9 million equity shares.

Don't want to miss the best from Business Standard?

Midwest IPO: Midwest, a quartz processor serving the solar gas and engineered stone industries, is set to launch its initial public offering (IPO) on Wednesday, October 15, 2025. The company aims to raise ₹451 crore through its maiden public issue. The mainline offering comprises a fresh issue of 2.3 million equity shares aggregating to ₹250 crore and an offer for sale of 1.9 million equity shares aggregating to ₹201 crore.

 

The company has reserved not more than 50 per cent of the issue for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 35 per cent for retail investors. 

Midwest is engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones. Midwest is India’s largest producer and exporter of Black Galaxy Granite. The company has 20 operational Mines, comprising 16 Granite Mines, 3 Quartz Mines and 1 Marble Mine, and a resource base across the Indian states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu.

Midwest IPO: Should you apply or not?

Arihant Capital - Avoid

According to Arihant Capital, Midwest holds a dominant position in the Black Galaxy Granite segment, enjoying strong pricing power through its extensive mining presence in Telangana and Andhra Pradesh.  The company has also identified 25 new mining prospects to sustain long-term growth.

 

Additionally, beyond its core granite business, Midwest is diversifying into Quartz and Diamond Wire manufacturing, leveraging its mining expertise and strengthening value chain integration. Increased R&D focus supports this transition toward higher-margin, technology-led segments.

 

The company's leadership position, diversification strategy, and consistent performance position it well for sustainable medium to long-term growth. The industry P/E ratio is 12.5, with Pokarna being its closest peer trading at a P/E of 12.4 on FY25 EPS of ₹60.5.

 

However, Arihant Capital has recommended investors to 'Avoid' the Midwest IPO, saying the issue looks significantly overvalued compared to its peers.  "At the upper band of ₹1,065, the issue is valued at a P/E of 39.5x, based on an EPS of ₹26.9 (FY25) post-IPO," the brokerage said.  Check Rubicon Research IPO allotment status

SBI Securities - Neutral

According to analysts at SBI Securities,  at the upper price band of ₹1,065, the IPO is valued at FY25 P/E and EV/Ebitda multiples of 35.8x and 22.4x, respectively, on post-issue capital. Despite being a capital-intensive business, the company generates RoE/RoCE of 17.4 per cent/19.1 per cent, respectively. 

 

"However, while comparing with peers, the issue is valued at a premium. We maintain a 'Neutral' view on the issue and would like to monitor the performance of the company post listing," the brokerage said.

Midwest IPO GMP

On Tuesday, October 14, 2025, the unlisted shares of Midwest were trading flat at ₹1065, the upper end of the price band of ₹1,014 to ₹1,065, according to sources tracking unofficial markets.

Here are the key details of the Midwest IPO:

The three-day subscription window to bid for the Midwest IPO will close on Friday, October 17, 2025. The allotment of shares is expected to be finalised on Monday, October 20, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Thursday, October 23, 2025. 

 

Shares of Midwest will make their debut on the exchanges, NSE and BSE, tentatively on Friday, October 24, 2025. 

 

The company has set the price band in the range of ₹1,014 to ₹1,065, with a lot size of 14 shares. A retail investor would require a minimum investment of ₹14,910 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar for the issue. DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors are the book-running lead managers.  

 

According to the red herring prospectus (RHP), the company will use ₹130 crore from the fresh issue to invest in its wholly owned subsidiary, Midwest Neostone, for the Phase II expansion of its Quartz Processing Plant. It will also allocate ₹25.7 crore for electric dump trucks and invest in its material subsidiary, APGM. Additionally, ₹3.25 crore will go toward solar energy integration at select mines, ₹53.8 crore for repayment of certain debts, and the rest for general corporate purposes.