Midwest makes positive D-St debut; shares list at 10% premium on bourses

Midwest stock opened at ₹1,165.1 on BSE, a premium of 10 per cent. Post-listing, it hovered around ₹1,174

Midwest IPO listing, Midwest share price: Shares of quartz processing company Midwest made a positive debut on Dalal Street in an otherwise flat market. 

The company’s shares are listed at ₹1,165 per share on the NSE, reflecting a premium of nearly 10 per cent over the issue price of ₹1,065. Shortly after listing, the stock touched a high of 1,190, up over 2 per cent from its opening and holding notable gains.

 

On the BSE, the Midwest stock opened at ₹1,165.1 as well, a premium of 10 per cent. Post-listing, it hovered around ₹1,174.

 

The listing price of Midwest was in line with the grey market estimates. Ahead of the listing, unlisted shares of Midwest were trading at ₹1,180, commanding a grey market premium (GMP) of ₹115 or 10.8 per cent against the issue price, according to sources tracking unofficial markets.  

 

Midwest IPO subscription rate

As per data from the National Stock Exchange (NSE), the Midwest IPO saw a robust response, with overall subscriptions reaching 87.9 times. Investors placed bids for 273.98 million equity shares against the 3.11 million shares available. Non-Institutional Investors (NIIs) led the demand, oversubscribing their allotted quota by 168.07 times. The Qualified Institutional Buyers (QIBs) segment was subscribed 139.87 times, while the retail investors’ portion received 24.26 times more bids than the shares on offer. 

Midwest IPO details:

Midwest successfully raised ₹451 crore through its initial public offering, which comprised a fresh issue of 2.3 million equity shares and an offer for sale (OFS) of 1.9 million equity shares. The IPO was offered in the price band of ₹1,014 to ₹1,065 per share, with a minimum application lot of 14 shares. The issue was open for subscription from October 15 to October 17.

 

According to the red herring prospectus (RHP), the company plans to utilise ₹130.3 crore from the net fresh issue proceeds for investment in wholly owned subsidiary - Midwest Neostone, by way of a loan, towards funding capex for the Phase II Quartz Processing Plant. Further, ₹25.8 crore will be used for capex for the purchase of Electric Dump Trucks to be used by the company and investment in material subsidiary - APGM, by way of a loan, for the purchase of Electric Dump Trucks, and ₹3.3 crore for capex for the integration of solar energy at certain mines of the company. The company proposes to use ₹56.2 crore for prepayment or repayment of certain borrowings of the company and APGM. The remaining funds will be used for general corporate purposes.