Midwest Gold Limited has successfully completed a significant capital raising exercise through the allotment of equity shares on a preferential basis to non-promoter investors. The Board of Directors approved this strategic move during their meeting held on December 31, 2025, marking a substantial milestone in the company's growth trajectory.

Share Allotment Details

The company allotted 10,00,000 equity shares of ₹10 each at an issue price of ₹1,500 per share, generating total proceeds of ₹150 crores. This preferential allotment was conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the provisions of the Companies Act, 2013.

Major Investors and Allocation

The allotment was distributed among 27 non-promoter investors, with institutional and individual participants. The largest allocation went to Vikasa India EIF I Fund, which received 3,46,670 shares for ₹52.00 crores. Other significant investors include Chiranjeev Singh Saluja and India Emerging Giants Fund Limited, each receiving 1,33,330 shares for ₹19.99 crores respectively.

Impact on Share Capital

Following the successful allotment, the company's capital structure has been strengthened significantly. The issued and paid-up equity share capital increased from 1,10,47,946 equity shares to 1,20,47,946 equity shares of ₹10 each, representing a 9.05% increase in the total number of shares outstanding.

Regulatory Approvals and Next Steps

The company had previously received in-principle approval from BSE Limited for the issuance of these equity shares on December 18, 2025. The newly allotted shares will rank pari passu with the existing equity shares of the company in all respects. Midwest Gold Limited will apply for listing and trading approval from the stock exchange for these equity shares in due course.

The Board meeting, which commenced at 4:45 PM and concluded at 5:10 PM on December 31, 2025, was conducted under the regulatory framework of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This successful capital raising exercise positions the company for its next phase of growth and expansion plans.

Midwest Gold shares surged 4% on Friday following Motilal Oswal's initiation of coverage with a 'Buy' rating and target price of ₹2,000.00. In a bull case scenario, the brokerage has set an ambitious target of ₹2,500.00 per share, indicating an upside potential of 54% from recent levels. The positive outlook is based on the company's dominant position in the black granite market and strategic diversification into high-growth segments.

Market Leadership in Granite Segment

Midwest has established itself as India's largest producer and exporter of premium Black Galaxy and Absolute Black granite varieties. The company operates a vertically-integrated supply chain with 20 mines and generated ₹630.00 crores in revenue during FY25, achieving a compound annual growth rate exceeding 21% over the past five years.

Motilal Oswal expects granite volumes to scale up to ₹150,000.00 per cubic meter by FY28 through new mine and cluster-based expansions, ensuring steady earnings growth.

Strategic Diversification and Growth Projections

The brokerage highlights Midwest's expansion into quartz processing and heavy mineral sands as key growth drivers. The company possesses substantial quartz resources and has outlined ambitious production enhancement plans that will significantly diversify its revenue base.

Motilal Oswal expects these expansions to reduce granite's revenue concentration from 96-98% in FY25 to 50% by FY28, while overall revenue and EBITDA are projected to post 36% and 47% CAGR respectively over FY25-28.

Financial Outlook and Bull Case Scenario

The brokerage forecasts Midwest's revenue and EBIT to clock a 12% CAGR each over FY25-28 in the base case. However, the bull case scenario presents significantly higher growth potential with enhanced operational metrics.

The company's net debt stands at ₹220.00 crores, translating to a net debt/EBITDA ratio of 1.30x as of FY25. This ratio is expected to decline below 1.00x due to rising operating profits, with operating cash flow likely to exceed ₹200.00 crores annually by FY27-28.

Stock Performance and Market Position

Midwest shares listed on October 24 at a 9% premium over the issue price of ₹1,065.00 per share. The stock has delivered impressive returns of 58% from its issue price, reaching a post-listing high of ₹1,687.00. Trading at ₹1,654.40 with a 1.80% gain on Friday, the stock demonstrates strong market confidence in the company's growth strategy and operational capabilities.