Hyderabad’s Granite Giant Midwest Eyes ₹650-Cr IPO to Expand Black Galaxy Operations

Midwest, one of India’s biggest producers of Black Galaxy Granite, has filed papers with SEBI to raise ₹650 crore through an initial public offering (IPO). The Hyderabad-based company’s IPO includes a fresh issue of shares worth ₹250 crore and an offer-for-sale (OFS) of up to ₹400 crore by its promoters. Part of the IPO is reserved for eligible employees as well.

The OFS includes ₹360 crore worth of shares from promoter Kollareddy Rama Raghava Reddy and ₹40 crore from Guntaka Ravindra Reddy.

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Additionally, Midwest may raise ₹50 crore in a pre-IPO round. If this happens, the size of the fresh issue will be reduced accordingly.

Midwest plans to use ₹127.05 crore from the fresh issue for capital expenses at its subsidiary Midwest Neostone. This will go toward expanding its quartz grit and powder processing plant. Another ₹25.75 crore will be used to buy electric dump trucks, and ₹3.26 crore will be invested in solar energy systems at selected mining sites.

₹53.80 crore will go towards debt repayment, while the remaining funds will cover general corporate needs.

Midwest is known for producing and exporting Black Galaxy Granite, a high-quality granite with a golden flake pattern, often used in real estate projects for countertops, flooring, and bathroom walls.

The company’s revenue grew by 16.54% in FY24 to ₹585.62 crore, up from ₹502.52 crore in FY23. Profit after tax saw a significant increase of 84.30%, reaching ₹100.32 crore compared to ₹54.44 crore in the previous year.

DAM Capital Advisors, Intensive Fiscal Services, and Motilal Oswal Investment Advisors will manage the IPO, and KFin Technologies will handle the issue’s registry.