Midwest IPO: 5 Key Points Before you Apply!
The Midwest IPO is closing today, October 17, 2025, and it stands at a pivotal point in its corporate history. This mining giant is moving beyond its granite dominance into the high-growth, high-margin verticals of Quartz and Rare Earth Elements (REEs). The high subscription rates and strong GMP confirm the strong market interest in this transformation story.
Final Verdict: I will Apply in this IPO only for Small-Reasonable Listing Gains 💰
1. Global Leadership in Granite & End-to-End Model
Midwest is a world-class leader in its core natural stone segment, controlling the full value chain from exploration to export. Its core strength lies in premium products:
- Black Galaxy Granite: Midwest is India's largest exporter, commanding a 64% market share of the country's Black Galaxy Granite exports. This granite is unique, available in only one village in Andhra Pradesh globally, giving the company an invaluable monopolistic edge.
- Absolute Black Granite: It is also the largest producer of Absolute Black Granite in India.
The company operates 16 mines and maintains its own Diamond Wire manufacturing (backward integration) to manage quality and costs, exporting to 17 countries, with China, Italy, and Thailand as primary markets.
2. The Future: Diversification into High-Growth Verticals (Quartz & REEs)
The true investment thesis lies in the upcoming business verticals, which aim to drive growth beyond the granite segment:
- Quartz Processing: Phase I of the plant is operational, serving as an essential raw material for Engineered Stone and Solar Glass. IPO funds are earmarked for Phase II expansion (₹127 Cr CapEx) to produce ultra-high purity quartz, a critical precursor for Semiconductors and Optical Glass.
- Heavy Mineral Sand (HMS) Mining: The company is venturing into HMS mining in Sri Lanka to extract valuable industrial minerals like Titanium Feedstock and Monazite. Monazite is a key source for Rare Earth Elements (REEs) used in high-strength magnets for EVs and Wind Turbines. This segment, expected to commence in FY27, carries potential for high growth and higher margins.
3. Financials, Valuation & The Need for Clarity
The company reported only 7% Revenue and PAT growth in FY25, and the entry into new verticals introduces a gestation period (FY26 to H1 FY27). Predicting future revenue is difficult without clearer guidance on the new segments.
| Financials (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Income | 522.23 | 603.33 | 643.14 |
| PAT | 54.44 | 100.32 | 133.30 |
| Valuation (Upper Band) | 27x PE |
The 27x FY25 PE looks relatively high compared to the listed peer (Pokarna trades at ~12x). It is better to wait for management commentary post-listing to get clarity on the valuation of the new verticals before committing to long-term investment.
4. Key Risks and Concerns
- Litigation & Promoter Risk: The promoter received a CBI notice in 2015 (unresolved), and there are multiple ongoing Tax and Statutory proceedings. This adds an element of reputational and financial risk.
- High Concentration: The company faces high revenue concentration from China (40-45%) and its Top 5 Customers (35-40%). Any disruption in trade relations or loss of a major client could impact revenue severely.
- Promotional Activities: The notable volume of heavy promotional activities observed on social media is unusual for a business of this quality, raising questions about market confidence.
5. IPO Details & Final Subscription Status
The strong subscription ensures a healthy listing is almost guaranteed, making the short-term play attractive.
| Particulars | Details |
|---|---|
| Issue Dates | October 15 - 17, 2025 |
| Price Band | ₹1,014 - ₹1,065 per share |
| Total Subscription (Day 2) | 12.34x (Retail: 8.63x, NII: 34.89x) |
| Latest GMP (Oct 16) | ₹175.5 (~16.48% gain) |
| Listing Date (Tentative) | October 24, 2025 |
My view: Applying only for Small-Reasonable Listing Gains. Will track business post-listing for long-term decisions.
FAQs
Q. What is Midwest Limited's core business?
A. Midwest is primarily engaged in the mining and export of premium natural stones, holding the largest market share in Black Galaxy Granite and Absolute Black Granite in India.
Q. What new businesses is Midwest IPO venturing into?
A. The company is diversifying into high-growth sectors, including Quartz processing (for solar glass/semiconductors) and Heavy Mineral Sand (HMS) mining to extract Rare Earth Elements (REEs) used in EVs and defense technology.
Q. What is the latest GMP for the Midwest IPO?
A. The last reported GMP is ₹175.5, suggesting an expected listing gain of approximately 16.48% over the upper price band of ₹1,065 per share.
Q. Is Midwest IPO priced high compared to peers?
A. Yes, the IPO is valued at roughly 27x FY25 PE, which is considered a significant premium compared to the closest listed peer, Pokarna, which trades at a lower multiple.
Q. When is the allotment and listing date for the IPO?
A. The allotment is tentative for October 20, 2025, and the shares are scheduled to list on BSE and NSE on October 24, 2025.