Midwest IPO Grey Market Premium Soars, Indicating Strong Investor Interest
Midwest Ltd.'s Rs 451 crore IPO enters its final subscription day with a grey market premium of Rs 175.5, indicating a potential listing price of Rs 1,240.5 per share. The IPO, priced at Rs 1,014 - Rs 1,065 per share, was 1.84 times oversubscribed on day one, with non-institutional investors showing 4.17 times demand. The Hyderabad-based natural stone company, India's largest producer of Black Galaxy Granite, reported a total income of Rs 643.14 crore and profit after tax of Rs 133.30 crore. The IPO is set to list on BSE and NSE on October 24, 2023.
*this image is generated using AI for illustrative purposes only.
Midwest Ltd., a Hyderabad-based natural stone company, has seen its Initial Public Offering (IPO) grey market premium surge to Rs 175.5 on the second day, signaling robust investor enthusiasm. This development comes as the company's Rs 451 crore IPO enters its final day of subscription.
Grey Market Premium Insights
The grey market premium of Rs 175.5 suggests a potential listing price of Rs 1,240.5 per share, representing a 16.48% premium over the upper price band of the IPO. This indicates strong market sentiment and expectations for the company's stock performance upon listing.
IPO Details and Subscription Status
| Aspect | Details |
|---|---|
| IPO Size | Rs 451 crore |
| Price Band | Rs 1,014 - Rs 1,065 per share |
| Fresh Issue | Rs 250 crore |
| Offer for Sale | Rs 201 crore |
| Subscription Status (Day 1) | 1.84 times oversubscribed |
| Non-Institutional Investors Demand | 4.17 times subscription |
| IPO Closing Date | October 17, 2023 |
| Expected Listing Date | October 24, 2023 |
| Listing Venues | BSE and NSE |
Company Profile and Financial Performance
Midwest Ltd. specializes in mining and exporting premium granites and quartz materials. The company has established itself as India's largest producer of Black Galaxy Granite, a testament to its strong market position in the natural stone industry.
| Financial Metric | Value |
|---|---|
| Total Income | Rs 643.14 crore |
| Profit After Tax | Rs 133.30 crore |
The company's financial performance, coupled with its market leadership in premium granite production, appears to be driving investor interest in the IPO.
Investor Sentiment and Market Response
The strong oversubscription, particularly from non-institutional investors, suggests a positive market response to Midwest's public offering. The grey market premium's significant rise on the second day further underscores the high expectations surrounding the company's market debut.
As the IPO enters its final day, investors and market watchers will be keenly observing the overall subscription levels and any further movements in the grey market premium. These factors could provide insights into the potential listing day performance of Midwest Ltd.'s shares.
With the listing scheduled for October 24 on both BSE and NSE, the market will soon have a clearer picture of how this enthusiasm translates into actual trading performance for Midwest Ltd.'s shares.
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