Granite Producer Midwest Files Draft Papers For Rs 650-Crore IPO With SEBI
The IPO consists of a mix of fresh issues of shares worth Rs 250 crore and an offer-for-sale worth Rs 400 crore.
Midwest Ltd. filed its preliminary papers with the Securities and Exchange Board of India to sell shares worth Rs 650 crore via an initial public offering. The IPO consists of a mix of fresh issues of shares worth Rs 250 crore and an offer-for-sale worth Rs 400 crore.
Promoter Kollareddy Rama Raghava Reddy will offload shares worth Rs 360 crore, while the promoter group Guntaka Ravindra Reddy will sell shares worth Rs 40 crore.
DAM Capital Advisors Ltd., Intensive Fiscal Services Pvt., and Motilal Oswal Investment Advisors Ltd. will be the book-running lead managers for the issue, according to the draft paper filed with the market regulator.
Upon successful completion of raising funds via IPO, the shares will be listed on the BSE Ltd. and the National Stock Exchange.
The company has earmarked Rs 127 crore from the proceeds of the IPO to fund its subsidiary's capital expenditure, as well as about Rs 25 crore for capital expenditure on the purchase of electric dump trucks.
The sum of Rs 53 crore will be used to repay outstanding borrowings, while Rs 3.2 crore will go towards capital expenditure for solar energy integration.
The Midwest is involved in the exploration, mining, processing, marketing, distribution, and export of natural stones.
It is India’s largest producer and exporter of Black Galaxy Granite and held a share of approximately 23% of the Indian export market for Black Galaxy Granite in fiscal 2024, it said in its draft papers.
Its customers, comprising processors and distributors, are located across 17 countries, with China, Italy, and Thailand being their primary export markets.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
