Midwest IPO
Midwest IPO Price Range is ₹1014 - ₹1065, with a minimum investment of ₹14,910 for 14 shares per lot.
Subscription Rate
1.84x
as on 15 Oct 2025, 06:10PM IST
Minimum Investment
₹14,910
/ 14 shares
IPO Status
Live
Price Band
₹1014 - ₹1065
Bidding Dates
Oct 15, 2025 - Oct 17, 2025
Issue Size
₹451.00 Cr
Lot Size
14 shares
Min Investment
₹14,910
Listing Exchange
BSE
IPO Doc
Midwest IPO Application Timeline
Objectives of IPO
- The company has launched the IPO to raise capital totaling up to ₹451 crore. This amount consists of two components: a Fresh Issue by the company aggregating up to ₹250 crore and an offer for sale (OFS) aggregating up to ₹201 crore. The offer for sale funds will be paid directly to the selling shareholders, who include Mr. Kollareddy Rama Raghava Reddy (selling up to ₹181 crore) and Mr. Guntaka Ravindra Reddy (selling up to ₹20 crore).
- The company plans to invest ₹130.3 crore by way of an unsecured loan to Midwest Neostone Private Limited, its wholly owned subsidiary. This investment is directed toward funding the capital expenditure necessary for Phase II of the Quartz Processing Plant, which is expected to expand the plant’s capacity by an additional 303,000 metric tonnes per annum.
- An amount of ₹25.76 crore is earmarked for purchasing Electric Dump Trucks (and associated chargers) for the company’s operations and for Andhra Pradesh Granite (Midwest) Private Limited (APGM), a material subsidiary. This capital expenditure is intended to boost operational efficiency, reduce the company's carbon footprint, and lower fuel and maintenance costs. Out of this amount, ₹17.17 crore will be loaned to APGM for the purchase of these trucks.
- The company plans to spend ₹3.26 crore on capital expenditure for integrating solar energy systems at some of its Mines. This effort is strategic, aimed at lowering the company’s reliance on conventional electricity sources and reducing overall operating costs.
- The plan allocates ₹56.22 crore towards the repayment of outstanding borrowings held by the company and APGM. As of June 30, 2025, the company's consolidated total borrowings were ₹270.11 crore. This repayment aims to reduce the company’s outstanding debt, lower debt servicing costs, and improve its debt-to-equity ratio.
- The balance of the IPO funds will be utilized for general corporate purposes. This amount is intended to meet ongoing general contingencies, fund growth opportunities, cover expenses incurred in the ordinary course of business, and procure necessary equipment and vehicles.
Financial Performance of Midwest
The company has shown strong and steady financial growth over the last three years. Revenue increased from ₹522 crore in FY23 to ₹643 crore in FY25, growing at an annual rate of 11%. Profit after tax rose sharply from ₹54 crore to ₹133 crore during the same period, reflecting better cost control and improved efficiency. The FY25 profit figure also includes an exceptional gain of ₹25.79 crore from the loss of control of a subsidiary.
Margins remained healthy, with the EBITDA margin improving from 17.8% in FY23 to 27.4% in FY25, while the PAT margin stayed stable at around 17%. Total assets grew quickly, from ₹660 crore in FY23 to ₹1,059 crore in FY25, showing a 26.7% annual growth, supported by higher investments in capacity expansion. Borrowings rose to ₹237 crore in FY25 due to higher working capital needs and new equipment loans, continuing to ₹270 crore in Q1 FY26.
The company also reported a profit of ₹24.4 crore in Q1 FY26, showing continued momentum. Overall, it reflects strong operational performance, expanding scale, and a solid margin profile, despite higher borrowings to support growth.
Strengths and Risks
Strengths
It is India’s largest producer and exporter of Black Galaxy Granite, holding a substantial 64% share of the Indian export market for this premium stone in FY25.
Between FY23 and FY25, its profit after tax grew at a compound annual growth rate (CAGR) of 40.53%. Revenue from operations also demonstrated a solid CAGR of 11.63% during this period.
The company maintains a strong balance sheet, reflected by a low Debt-to-Equity ratio of 0.43 times in FY25. Its Interest Coverage Ratio was strong at 13.37 times in FY25, showing a high ability to service debt.
Operational scale for its core product, Black Galaxy Granite, is consistently high, with 66,548 cubic meters produced and 66,726 cubic meters sold in FY25. This demonstrates reliable mining yield and strong sales fulfillment capability.
Dimensional granite mining is capital-intensive and has long gestation periods, which benefits established players. It leverages over 40 years of experience and operates a large fleet of specialized equipment.
The company follows a stringent credit policy, often requiring customer advances or letters of credit prior to allocation of products. This helps meet working capital requirements, reduces bad debt risk, and shortens the finance cost period.
Risks
It faces risk from reliance on a few customers; the top 10 customers contributed 63.22% of total revenue for the three months ended June 30, 2025. Many of these contracts can be terminated without prior notice.
Its revenue is highly exposed to foreign markets, specifically China, the global granite distribution hub, which generated over 50% of its revenue in FY23, 2024, and the quarter ending June 30, 2025.
A large majority of revenue, 69.77% in the three months ended June 30, 2025, relies on Black Galaxy Granite. This stone is mined exclusively from just three locations in Chimakurthy, Andhra Pradesh.
The company’s consolidated total borrowings were ₹270.11 crore as of June 30, 2025, grown from ₹149.07 crore in FY23. Furthermore, it experienced negative cash flow from operating activities amounting to ₹51.95 crore in FY23.
It has substantial contingent liabilities totaling ₹112.76 crore as of June 30, 2025, including ₹43.92 crore related to Goods and Services Tax. If these materialize, they would negatively impact its financial condition.
As 63.66% of its revenue is earned in foreign currency, it is exposed to exchange rate risk. Its unhedged net receivables stood at ₹153.58 crore as of June 30, 2025.
How to Apply for Midwest IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Midwest IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Midwest
Company | Operating Revenue (₹ Cr) | EBITDA Margin | Profit (₹ Cr) | P/E Ratio (x) | Return on Equity | Interest Coverage Ratio (x) | Working Capital Days |
Midwest Granite | ₹626.2 Cr | 27.43% | ₹107.5 Cr | 35.82x | 19.42% | 13.37x | 120 |
₹930.1 Cr | 35.03% | ₹187.5 Cr | 12.73x | 24.11% | 7.59x | 121 |
Midwest Shareholding Pattern
| Promoters & Promoter Group | 95.83% | |
| Name | Role | Stakeholding |
| Mr. Kollareddy Rama Raghava Reddy | Promoter | 73.58% |
| Mr. Kollareddy Ramachandra | Promoter | 5% |
| Mrs. Kukreti Soumya | Promoter | 5% |
| Mrs. Uma Priyadarshini Kollareddy | Promoter | 1% |
| Mr. Guntaka Ravindra Reddy | Promoter Group | 9.42% |
| Mr. Deepak Kukreti | Promoter Group | 1% |
| SVADHA India Emerging Opportunities Scheme 1 | Public | 4.17% |
| Others | 0.83% |
About Midwest
The company targets customers primarily composed of natural stone distributors and processors, both domestically and internationally. Its international reach is significant, covering customers across 17 countries as of June 30, 2025. Exports account for the majority of its revenue, reaching ₹90.56 crore or 63.66% of its revenue during the three months ended June 30, 2025. Its main foreign market is China, which functions as a global distribution hub and has historically generated over 50% of its revenue. Operationally, it runs 20 mines across South India (including 16 Granite Mines, 3 Quartz Mines, and 1 Marble Mine) and employs 475 permanent employees as of June 30, 2025.
Midwest Limited demonstrates proven financial strength, achieving compounded annual revenue growth of 11.63% between FY23 and FY25. The future business strategy is centered on capitalizing on the strong demand for its core granite products while diversifying its portfolio. This involves developing the Phase II Quartz Processing Plant to significantly expand its quartz business and initiating mining activities in the Heavy Mineral Sands segment, with commercial operations planned to commence in FY27. It also plans to grow its Diamond Wire Segment by improving products and expanding its distribution network.
For more details, visit here: https://midwest.in
Know more about Midwest
Midwest IPO Review: GMP, Share Price, Valuation, Peer Comparison & More
Read a simple, expert-backed review of Midwest Limited IPO - India’s Black Galaxy Granite leader. Covers business model, strengths, risks, valuation & GMP.
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Who are the promoters of Midwest?
The company is promoted by four individuals: Mr. Kollareddy Rama Raghava Reddy, Mr. Kollareddy Ramachandra, Mrs. Kukreti Soumya, and Mrs. Uma Priyadarshini Kollareddy. They collectively hold the company's pre-IPO equity share capital.
Who are the competitors of Midwest?
The primary listed competitor used for financial comparison is Pokarna Limited. The company operates in the dimensional natural stone industry, which is generally fragmented with many smaller and medium-sized enterprises.
How does Midwest make money?
It makes money by mining, processing, and exporting natural stones, primarily Black Galaxy Granite. The Natural Stone Segment provided 94.06% of its total operating revenue in the three months ended June 30, 2025.