Midwest Grainte Producer Files for Rs 650 Crore IPO

                Upcoming IPO Alert! Leading Black Galaxy 
Granite producer, Midwest, is all set to go 
public as the company has filed its draft red 
herring prospectus (DRHP) with the market 
regulator, Securities and Exchange Board of 
India (SEBI), to raise Rs 650 crore through an 
initial public offering (IPO).
With this issue, Midwest is offering a fresh 
issue of shares up to Rs 250 crore and an offer 
for sale (OFS) of up to Rs 400 crore by 
promoter offlaoding their stakes. The offer for 
sale 
consists of up to Rs 360 crore by Kollareddy 
Rama Raghava Reddy, and up to Rs 40 crore by 
Guntaka Ravindra Reddy.
DAM Capital Advisors, Motilal Oswal 
Investment Advisors, and Intensive Fiscal 
Services Private are the book-running lead 
managers for the Midwest IPO, while KFin 
Technologies is 
the registrar for the public issue.
Midwest said that, in consultation with the 
book-running lead manager, it may consider an 
issue of specified securities up to Rs 50 crore 
as a ‘pre-IPO placement’. Accordingly, if such 
placement is completed, the fresh issue size 
will be reduced. The offer is being made 
through the book-building process, wherein not 
more than 50 per cent of the net offer shall be 
available for allocation on a proportionate 
basis to qualified institutional buyers, not less 
than 15 per cent of the net offer shall be 
available for allocation to non-institutional 
investors, 
and not less than 35 per cent of the net offer 
shall be available for allocation to retail 
individual investors.
Midwest proposes to utilize the net proceeds 
from the fresh issuance to the extent of Rs 
127.05 crore for funding capital expenditure by 
Midwest Neostone, its wholly owned 
subsidiary, towards phase-II of the quartz grit 
and powder processing plant, and Rs 25.75 
crore for capital expenditure for the purchase 
of electric dump trucks to be used by the 
company and APGM, its Material Subsidiary. 
The company also intends to use Rs 3.26 crore 
for capital expenditure for the integration of 
solar energy at certain mines of the company, 
and Rs 53.80 crore for pre-payment/re-
payment of, in part or full, certain outstanding 
borrowings of the Company and APGM, as well 
as for general corporate purposes.
Hyderabad-based Midwest Limited is one of 
the leading players in natural stone mining, 
including granite, marble, quartzite, quartz, and 
heavy mineral sands. Midwest has mined an 
average of 1.37 million cubic meters of granite 
annually, encompassing both marketable and 
waste granite between FY22-24.
It is India’s largest producer and exporter of 
Black galaxy granite, a premium variety of 
granite, which has a sparkling feature with 
flakes of a golden hue. The company at 
present 
holds 20 mining lease licenses, five leases for 
which mining approvals are in the process, two 
granite processing units, one quartz crushing 
and processing unit, and one diamond tool 
manufacturing plant.




Source : Economic Times