Midwest Gets Nod For Rs650-Cr Issue

New Delhi: Midwest, one of the largest producers of Black Galaxy Granite, has received Sebi’s clearance to raise funds through an initial public offering, an update with the capital markets regulator showed on Tuesday. The proposed Initial Public Offering (IPO) of Hyderabad-based Midwest is a mix of fresh issue of shares up to Rs 250 crore and an Offer For Sale (OFS) of up to Rs 400 crore by promoters.

The offer also includes reservation for subscription by eligible employees, according to the Draft Red Herring Prospectus (DRHP). The OFS consists of sale of shares worth up to Rs 360 crore by Kollareddy Rama Raghava Reddy and up to Rs 40 crore by Guntaka Ravindra Reddy. Besides, the company may consider raising Rs 50 crore in a ‘pre-IPO’ placement round. If such placement is completed, the fresh issue size will be reduced. As per the update, Midwest Ltd, which filed preliminary IPO papers with Sebi in October last year, obtained its observation letter on February 4, 2025.