Midwest IPO: Mining Company’s Shares Make Decent Debut With Over 9% Premium

Midwest IPO Listing Price: Midwest Ltd shares listed on the NSE and BSE on October 24. Shares of the mining and natural stone processing company made a decent debut on the exchanges. Midwest shares listed with over 9 per cent premium compared to the issue price.

Midwest shares made their debut at Rs 1,165 per share with gains of 9.38 per cent against the issue price of Rs 1065 per share. Midwest shares listed at Rs 1165.1 apiece with 9.39 per cent premium on the BSE.

Retail investors who were allotted a minimum of one lot or 14 shares would have gained at least Rs 1,400 (Rs 1,165 - Rs 1065 x 14). As many as 63,000 shares of Midwest Ltd changed hands on the BSE and the total market capitalisation of the company stood at Rs 4,213.1 crore.

Midwest IPO: Details

Midwest Ltd raised Rs 451.1 crore through its public issue. The mining company’s public issue comprised a fresh issue of 2.3 million shares aggregating to Rs 250.1 crore and an offer for sale of 1.9 million shares amounting to Rs 201 crore. Midwest IPO price band was fixed at Rs 1,014 to Rs 1,065.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 14 shares, which aggregated to an investment of Rs 14,910. Midwest IPO saw stellar demand in its three-day subscription window. Midwest IPO was subscribed 87.89 times across categories. As many as 273.9 million shares of Midwest were bid for against the 3.11 million shares offered for subscription.

In the three-day bidding window, non-institutional investors led the demand for Midwest Ltd shares, booking their quota 168.07 times. On the other hand, qualified institutional buyers and retail individual investors booked their quota 139.87 times and 24.26 times respectively. Employees of Midwest Ltd subscribed their quota 24.44 times in the three-day bidding window.

Midwest IPO: Objective

Midwest Ltd seeks to use the money raised via the public issue for investing in its wholly owned subsidiary Midwest Neostone and for funding capital expenditure for setting up its Phase II Quartz Processing Plant. The proceeds will also be used by the mining company for buying electric dump trucks and the integration of solar energy at mines of the company. Midwest Ltd also seeks to use the funds raised via the public issue for pre-payment of its outstanding borrowings and general corporate purposes.

Midwest: Business Model

Midwest Ltd is a vertically integrated company which conducts its operations on a "mine-to-market" business model. The company operates within the natural stone and mineral processing industry. The operations of the company range from raw material extraction to processing, marketing, and global distribution. Midwest’s business has three main components, mining and quarrying, processing and value addition and global distribution and export.

Midwest: Peers

Some of Midwest Ltd.'s peers include Pokarna Limited, Aro Granite Industries Ltd, and HMG Granites Ltd. The company also competes with smaller players within the natural stone and mineral processing industry.

Midwest Share Price

At the time of writing, shares of Midwest Ltd traded higher by 1.25 per cent soon after listing at Rs 1179.65 apiece on the BSE. On the NSE, Midwest shares traded at Rs 1,171.6 apiece up by 0.57 per cent.