Shares of Midwest, a quartz processing company, made their market debut today on Indian bourses, listing at a premium of 9.4%.
On the NSE, the stock opened at Rs 1,165, a premium of 9.39% from the issue price.
The company’s IPO price band was set between Rs 1,014 and Rs 1,065 per share.
Midwest IPO subscription
The issue was subscribed 92.36 times. The retail category was subscribed 25.52 times while QIB subscription was at 146.99 times. The NII category subscription was at 176.57x.
Midwest IPO objectives
The proceeds from the fresh share issuance is expected to be used towards funding investment in Midwest Neostone Private, the wholly owned subsidiary, by way of a loan, towards funding capital expenditure for Phase II of the quartz grit and powder processing plant.
It will also use part of the proceeds for capital expenditure for electric dump trucks and investment in Andhra Pradesh Granite, its material subsidiary.
Some part of the proceeds will also be channelised for integration of solar energy at certain mines and pre-payment/re-payment of outstanding borrowings.
Midwest- Business dynamics
Some of the competitive strengths of the company include its presence in the Dimensional Granite value chain with mine to distribution capabilities. The company is India’s largest producer and exporter of Black Galaxy Granite, a premium variety of Granite. Emphasis on Research and Development and Technology Integration.