Midwest IPO: Files DRHP to SEBI for Upcoming IPO

Midwest Private Limited has filed its DRHP with SEBI to prepare for its upcoming public issue. This upcoming IPO is offering a fresh issue worth up to Rs 250 crore of equity shares and an offer for sale worth up to Rs 400 crore equity shares.

The total aggregate size of a public issue in rupees is worth up to Rs 650 and the total no. of equity shares that will be issued by the company has not yet been disclosed.

This IPO will follow the book-building process, with not more than 50% of the offer reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for retail investors.

Midwest IPO's open date and close date is not yet declared. The price band & lot size will be revealed soon by the company. The Shares to be offered through the Red Herring Prospectus are proposed by the company to be listed on the BSE and NSE exchange.

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About Midwest Limited

Midwest Limited, part of the Midwest Group, was founded in 1981 by Mr. K. Raghava Reddy, focusing on natural stone exploration and processing. The company has a specialization in granite, marble, limestone, and travertine and is one of the top 3 natural stone exporters in india. With an annual production exceeding 35 lakh tons of granite. In 2007, it diversified into coal mining by acquiring assets in Mozambique. The company employs over 1,600 personnel globally and has a robust corporate social responsibility program that exceeds governmental expectations. Midwest is recognized as a "Star Export House" by the Indian government and participates actively in international trade shows.

Midwest IPO Objectives

The company plans to use the net proceeds by spending Rs 127.05 crores on the phase-II expansion of its quartz processing plant through Midwest Neostone Private Limited. Rs 25.76 crore will be used to buy electric dump trucks, and Rs 3.26 crore will go towards adding solar energy to its mines. Furthermore, Rs 53.80 crores will be used to repay borrowings, and the remaining funds will be allocated for general corporate purposes.

Financials of Midwest Limited

The financials for the company during the period ended 31 March 2024, compared to 31 March 2023:

1. Assets increased from Rs 656 crores in March 2023 to Rs 757.12 crores in March 2024, a 15.41% increase.
2. Revenue increased from Rs 502.52 crores to Rs 585.62 crores, a 16.54% increase.
3. Profit After Tax (PAT) increased from Rs 54.44 crores in March 2023 to Rs 100.32 crores in March 2024, an 84.30% increase.
4. Total Borrowing decreased from Rs 149.08 crores to Rs 120.48 crores, a 19.18% decrease.

Lead managers and Registrar of Midwest IPO

The IPO is managed by DAM Capital Advisors Limited, Intensive Fiscal Services Private Limited, and Motilal Oswal Investment Advisors Limited, which is the book-running lead manager for this public issue. The company has appointed KFin Technologies Limited as the registrar for this public issue.

Promoters of Midwest

Mr. Kollareddy Rama Raghava Reddy, Mr. Kollareddy Ramachandra, Mrs. Kukreti Soumya and Mrs. Uma Priyadarshini Kollareddy are the identifiable promoters (s) of the company. They collectively held 99.17% of the company's shares. However, post-IPO changes in their shareholding have not yet disclosed in the Prospectus filed by the company with SEBI. To read full DRHP click here.

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