Shares of Midwest made a decent Dalal Street debut on Friday, October 24 as the natural stones player was settled at Rs 1,165.10 on BSE, a premium of 9.40 per cent over its issue price of Rs 1,065. Similarly, the stock kicked-off its maiden trading session with a premium of 9.39 per cent over the issue size at Rs 1,165 on NSE.
The listing of Midwest has been marginally below the expected lines. Ahead of its debut, Midwest was commanding a grey market premium of Rs 110-115 per share in the unofficial market, suggesting a listing pop of 10-11 per cent for the investors. The GMP stood at Rs 100-105 during the Diwali period.
As of the listing price, retail investors made a profit of Rs 1,400 on each lot consisting of 14 equity shares. Similarly, HNI investors, who received 14 lots or 196 equity shares worth Rs 2,08,740, made a profit of Rs 19,600 on their investments.
The IPO of Midwest ran for bidding between October 15 and October 17. It had sold its shares in the price band of Rs 1,014-1,065 per share with a lot size of 14 shares. The company raised a total of Rs 451 crore via IPO, which included a fresh share sale of Rs 250 crore and offer-for-sale (OFS) of up to 18,87,323 equity shares Rs 201 crore.
The issue was overall subscribed a solid 87.89 times. The allocation for the qualified institutional bidders (QIBs) was subscribed 139.87 times, while the portion for non-institutional investors’ (NIIs) was subscribed 168.07 times. The quotas for retail investors and employees were booked 24.26 times and 24.44 times, respectively.
Incorporated in 1981, Hyderabad-Midwest is engaged in the business of exploration, mining, processing, marketing, distribution, and export of natural stones. It is a producer and exporter of Black Galaxy Granite, a unique granite variety known for its sparkling golden flakes. Midwest operates 16 granite mines across 6 locations in Telangana and Andhra Pradesh
Brokerage firms had a mixed view on this IPO, suggesting to subscribe to it for a long-term period. DAM Capital Advisors, Intensive Fiscal Services and Motilal Oswal Investment Advisors were the book running lead managers and Kfin Technologies served the registrar of the issue.
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