Author: Dev Patel | EQMint | General News

The Midwest IPO, a leading exporter and producer of black granite, continues to attract strong investor interest. After a stellar start on Day 1, the IPO entered its second day of bidding on October 16, 2025, with robust demand across categories and growing enthusiasm in the grey market.

The bidding window for the Midwest IPO opened on October 15, 2025, and will close on October 17, 2025. The company has set the price band between ₹1,014 and ₹1,065 per equity share, with plans to list on both the BSE and NSE.

Strong Investor Response from Day One

According to exchange data, the public issue was fully subscribed on the very first day, signaling strong retail and institutional appetite. By 10:03 AM on Day 2, total subscription had climbed to 2.28 times, indicating continued momentum.

• Retail investors subscribed their quota 1.91 times.
• Non-Institutional Investors (NIIs) led the surge, subscribing 5.51 times their allocated portion.
• Qualified Institutional Buyers (QIBs) booked 0.50 times their reserved share.

The company aims to raise ₹451 crore through the IPO. Of this, ₹250 crore will be raised via the fresh issue of shares, while ₹201 crore will come through the Offer for Sale (OFS) route.

Grey Market Premium on the Rise

The positive subscription trend has also been mirrored in the grey market, where the Midwest IPO Grey Market Premium (GMP) rose to ₹145, up ₹15 from the previous day’s ₹130.

Market analysts attribute this surge in the grey market to two main factors — strong subscription data and a rebound in broader Indian equity indices midweek. The rising GMP indicates that the IPO could see healthy listing gains, reflecting strong investor sentiment and confidence in the company’s fundamentals.

Analysts Bullish on Midwest’s Growth Potential

Brokerages have responded positively to Midwest IPO, highlighting its strong fundamentals, consistent financial performance, and strategic expansion plans.

BP Equities, in its research note, gave the IPO a clear “Subscribe” recommendation. The brokerage said:

“Midwest’s established market position and rising global demand for natural and engineered stone products indicate resilient profitability. The company has reported healthy CAGR growth over FY23–25, with revenue, EBITDA, and PAT growing at 11.6% and 56.5% respectively. At the upper price band, Midwest’s valuation stands at a P/E of 27x FY25 earnings, which appears justified given its growth trajectory and expansion plans.”

Similarly, Ventura Securities also assigned a “Subscribe” rating, citing the company’s diversification strategy and new growth avenues. The brokerage noted:

“Midwest’s strategic focus on capacity expansion and diversification into quartz and heavy mineral mining, including ventures in Sri Lanka, opens multiple revenue streams. The company’s new quartz processing projects will also help it tap into emerging sectors such as solar and semiconductors. With increasing demand for processed stone globally, Midwest is well-positioned for long-term growth.”

Two other brokerages — Aditya Birla Money and Canara Bank Securities — have also rated the issue positively, maintaining their ‘Subscribe’ calls for investors looking for medium- to long-term gains. However, SBI Capital Securities has not released an official rating for the IPO.

Expanding Operations and Sector Leadership

Midwest Ltd. has steadily built its reputation as one of India’s top players in black granite production and export, supplying to several international markets. The company’s FY25 performance has been particularly strong, with granite sales volume rising to 108,892 cubic meters, up from 91,875 cubic meters in FY24 — a growth of nearly 19% year-on-year.

Beyond granite, Midwest is venturing into quartz processing and rare earth mineral mining, signaling a forward-looking strategy that aligns with global clean energy and semiconductor supply chain trends. Analysts believe this diversification could enhance the company’s long-term profitability and valuation.

Outlook: A Solid Bet for Long-Term Investors

With multiple “Subscribe” ratings, improving financials, and growing interest from both retail and institutional investors, the Midwest IPO appears poised for a strong finish. The rise in GMP and oversubscription trends underline investor confidence in the company’s fundamentals and market position.

If this momentum continues, analysts expect Midwest to make a promising debut on the stock exchanges, potentially delivering healthy listing gains.

However, experts also advise caution — as with any IPO, market conditions, final allotment pricing, and broader sentiment at the time of listing will play crucial roles in determining short-term returns.

References

1. Midwest IPO Day 2: GMP rises; issue booked nearly 2x — The Economic Times
2. Midwest IPO opens Oct 15; sets price band at ₹1,014-1,065: Key details — Business Standard
3. Midwest IPO: From business overview, financials to key risks — Mint
4. Midwest IPO Review: GMP, Valuation, Strengths & Risks — INDmoney

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.