1. At a Glance
Welcome to the world where rocks make more money than most startups. Midwest Ltd, the Hyderabad-based granite exporter, has decided to mine some fresh capital out of Dalal Street. The ₹451 crore IPO (₹250 crore fresh, ₹201 crore OFS) was oversubscribed 92.36 times, proving that Indians really love shiny things—be it gold, IPOs, or Galaxy Granite.
The issue price band was ₹1,014–₹1,065, and the final price chiselled in at ₹1,065 per share. Market cap post-listing: ₹3,851 crore. PAT for FY25: ₹133 crore. EPS post-issue (annualised): ₹26.97. That gives us a P/E of roughly 39.5×—basically, investors are valuing black rocks at the same multiple as tech stocks.
Three-month IPO return? We’ll see post-listing—but judging by the frenzy, people probably think granite exports are the new AI.
2. Introduction – The Shiny Stone Saga
Some companies drill for oil, others for data. Midwest drills for something even more solid—literal rocks. Founded in 1981, this company has been quietly exporting India’s pride: Black Galaxy and Absolute Black granite.
In a world obsessed with digital assets, Midwest’s “mining” doesn’t need GPUs—it uses excavators. While everyone else was launching SaaS platforms, these folks were polishing slabs for Italians, Chinese, and Swedes. And guess what? Those foreigners love our stones almost as much as they love yoga retreats in Rishikesh.
So now, Midwest comes to the markets with an IPO that’s part fresh issue, part old-timer OFS. The promoters (95.8 % pre-issue) will dilute a bit to 84.4 %, because even they know diversification is healthy—especially when your asset is buried underground.
The company operates 16 mines across Telangana and Andhra Pradesh, with plans to go deeper (literally). It even wants to install solar panels on mines—because if you’re digging holes, might as well go green while you pollute.
3. Business Model – WTF Do They Even Do?
Alright, let’s unearth the business. Midwest does four main things:
- Mining: They extract granite blocks—primarily the premium Black Galaxy type. Basically, these are sparkly black rocks used in luxury flooring, countertops, and politicians’ kitchens.
- Processing: Two big processing facilities—one in Telangana, one in Andhra Pradesh—where the granite gets cut, polished, and exported looking more photogenic than your passport photo.
- Exports: 70 %+ of revenue comes from exports to countries like China, Italy, and Thailand. The irony? We ship raw granite to China, and they ship it back as “Italian marble.”
- Future Expansion: Quartz processing plant (Phase II), electric dump trucks, and solar integration. The “eco-friendly miner” tagline writes itself.
So yes, Midwest basically digs stones, shines them, and sells them globally. But it does so profitably—EBITDA margin of 27 % and PAT margin of 17 %.
