Midwest Limited Announces Rs 451 Crore IPO with Price Band of Rs 1,014-1,065
Midwest Limited, a leading quartz processor, has announced its IPO to raise Rs 451 crore. The offer includes a fresh issue of Rs 250 crore and an offer for sale of Rs 201 crore. The price band is set at Rs 1,014-1,065 per share. The IPO will open on October 15 and close on October 17, 2023. The company's P/E ratio ranges from 25.72x to 27.02x, higher than the industry average of 12.73x. Midwest Limited is India's largest producer of Black Galaxy Granite and Absolute Black Granite. The IPO allocation includes 50% for QIBs, 35% for retail investors, and 15% for non-institutional buyers.
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Midwest Limited, a leading quartz processor serving the solar glass and engineered stone industries, has announced its Initial Public Offering (IPO) with a price band of Rs 1,014 to Rs 1,065 per equity share. The company aims to raise Rs 451 crore through this public offer, which is set to open on October 15 and close on October 17, 2023.
IPO Details
| Particulars | Details |
|---|---|
| Issue Size | Rs 451 crore |
| Fresh Issue | Rs 250 crore |
| Offer for Sale | Rs 201 crore |
| Price Band | Rs 1,014 - Rs 1,065 per share |
| Issue Opens | October 15, 2023 |
| Issue Closes | October 17, 2023 |
| Anchor Investor Allocation | October 14, 2023 |
Offer Structure
The IPO comprises a fresh issue of shares worth Rs 250 crore and an offer for sale by promoters amounting to Rs 201 crore. The share allocation for the IPO is structured as follows:
| Investor Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | 50% |
| Retail Investors | 35% |
| Non-Institutional Buyers | 15% |
Valuation and Industry Comparison
The price-to-earnings (P/E) ratio for Midwest Limited's IPO ranges from 25.72x to 27.02x based on diluted earnings per share (EPS). This valuation is significantly higher than the industry average P/E of 12.73x.
Company Overview
Midwest Limited holds a prominent position in the quartz processing industry, catering to both solar glass and engineered stone sectors. The company has also established itself as India's largest producer of Black Galaxy Granite and Absolute Black Granite, showcasing its strong market presence in the stone industry.
Shareholding Pattern
Currently, the promoters hold a 95.83% stake in Midwest Limited. The IPO is expected to alter this shareholding structure, potentially improving liquidity and broadening the investor base.
IPO Timeline
| Event | Date |
|---|---|
| Anchor Investor Allocation | October 14, 2023 |
| Issue Opens | October 15, 2023 |
| Issue Closes | October 17, 2023 |
| Expected Allotment Date | October 20, 2023 |
| Expected Market Debut | October 24, 2023 |
Investors and market participants will be closely watching this IPO, given Midwest Limited's strong position in the quartz processing and granite production sectors. The higher-than-industry-average P/E ratio may attract scrutiny from potential investors, who will need to weigh the company's growth prospects against its valuation.
As always, investors are advised to carefully review the company's red herring prospectus and consider their financial goals and risk appetite before making any investment decisions.
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