Midwest Limited Board Approves Wholly-Owned Subsidiary in Sierra Leone for HMS Reserves Expansion

Midwest Limited announced that its Board of Directors has approved the incorporation of a wholly-owned subsidiary in Sierra Leone during a board meeting held on January 7, 2026. This strategic decision represents a significant step in the company's global expansion efforts to secure additional Heavy Mineral Sands (HMS) reserves.

Strategic Expansion Initiative

The company has identified Sierra Leone as a prospective location for expanding its HMS reserves portfolio as part of its long-term growth strategy. Sierra Leone, recognized as a resource-rich West African nation, offers promising opportunities for mineral exploration and extraction activities.

Regulatory Compliance and Subsidiary Formation

The incorporation of a local subsidiary is essential to meet regulatory requirements in Sierra Leone's jurisdiction. Local regulations necessitate the establishment of a domestic entity to apply for mineral rights in the country. The following details outline the subsidiary formation:

Parameter:	Details
Subsidiary Type:	Wholly-owned subsidiary
Location:	Sierra Leone
Purpose:	HMS reserves exploration and mineral rights application
Approval Date:	January 7, 2026
Meeting Duration:	3:45 PM to 4:05 PM

Growth Objectives and Market Expansion

Midwest Limited is actively exploring global opportunities to diversify its mineral reserves and strengthen its market position. The Sierra Leone subsidiary will serve as a strategic platform to advance the company's expansion objectives in the West African mining sector. This initiative aligns with the company's commitment to securing long-term growth through geographical diversification of its HMS operations.

Regulatory Disclosure and Next Steps

The company has informed both BSE Limited and National Stock Exchange of India about this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additional information regarding the subsidiary incorporation will be disclosed as required under regulatory guidelines in due course.

The board meeting was conducted efficiently, lasting approximately 20 minutes, demonstrating the directors' clear alignment on this strategic expansion initiative. This development positions Midwest Limited to capitalize on mineral exploration opportunities in Sierra Leone while adhering to local regulatory frameworks.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.63%	-1.08%	+18.89%	+49.23%	+49.23%	+49.23%

Midwest has disclosed a proposed inter-se share transfer within its promoter group, with the transaction scheduled to take place on December 22, 2025. The transfer involves 14,08,851 equity shares being gifted from one promoter to an immediate family member, maintaining the overall promoter group shareholding structure.

Transaction Details

The share transfer will see Kollareddy Ranganayakamma, spouse of promoter Rama Raghava Reddy Kollareddy, acquire 14,08,851 equity shares representing 3.90% of the company's total share capital. The transaction is structured as a gift deed with no monetary consideration involved.

Parameter	Details
Transferor	Rama Raghava Reddy Kollareddy (Promoter)
Transferee	Kollareddy Ranganayakamma (Promoter Group Member)
Shares to be Transferred	14,08,851 equity shares
Percentage of Share Capital	3.90%
Transaction Date	December 22, 2025
Consideration	Nil (Gift Deed)

Regulatory Compliance

The transaction has been disclosed under Regulation 10(5) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transfer qualifies for exemption under Regulation 10(1)(a)(i) as it constitutes an inter-se transfer of shares among promoters and their immediate relatives. This exemption means no open offer is required to be made to public shareholders.

Shareholding Pattern Impact

The proposed transfer will result in changes to individual shareholdings within the promoter group while maintaining the aggregate promoter group holding unchanged.

Shareholder	Before Transaction	After Transaction
Kollareddy Ranganayakamma
Number of Shares	2,81,770	16,90,621
Percentage Holding	0.78%	4.68%
Rama Raghava Reddy Kollareddy
Number of Shares	2,31,79,774	2,17,70,923
Percentage Holding	64.10%	60.21%

Corporate Governance

Midwest has fulfilled its disclosure obligations by providing prior intimation to both BSE Limited and National Stock Exchange of India Limited. The notification confirms that both the transferor and transferee have complied with applicable disclosure requirements under Chapter V of the SEBI SAST Regulations, 2011.

The rationale provided for the transfer is described as an inter-se transfer by the promoter to his immediate relative by way of gift, indicating a family wealth restructuring arrangement within the promoter group. The transaction maintains transparency while utilizing the regulatory framework designed for such family transfers among promoter group members.