Hyderabad: Midwest Limited, a Hyderabad-based company engaged in exploration, mining, processing, marketing, distribution, and export of natural stones, received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through a 650 crore initial public offering (IPO). The company filed its IPO papers with SEBI on Sept 30, 2024.
As part of the IPO, Midwest plans to offer a fresh issue of shares of up to 250 crore at a face value of 5 each and an offer for sale (OFS) of up to 400 crore by the promoter selling shareholders. This includes an OFS of up to 360 crore by Kollareddy Rama Raghava Reddy and up to 40 crore by Guntaka Ravindra Reddy.
The company said it may also consider a pre-IPO placement of up to 50 crore, in which case the fresh issue size will be reduced. Midwest plans to utilise 127 crore from the net proceeds of the fresh issue for funding capital expenditure by its wholly-owned subsidiary, Midwest Neostone Private Limited, for the second phase of its quartz grit and powder processing plant. Additionally, 53.80 crore will be used for pre-payment or repayment of certain outstanding borrowings of the company and its subsidiary.