Whalesbook
The basis of allotment for the initial public offering (IPO) of Midwest, a company specializing in quartz processing, is scheduled for Monday, October 20, 2025. The IPO, which closed on Friday, October 17, 2025, garnered significant investor interest, being subscribed 87.9 times. A total of 273.98 million equity shares were bid for, far exceeding the 3.11 million shares offered.
Demand was particularly strong from Non-Institutional Investors (NIIs), whose portion was subscribed 168.07 times. Qualified Institutional Buyers (QIBs) subscribed their portion 139.87 percent, while retail investors subscribed 24.26 times their reserved quota.
Following allotment, investors can check their status on the BSE or NSE websites, or through the registrar, Kfin Technologies. In the unofficial market, Midwest's unlisted shares traded at a premium of ₹101 (9.5%) over the upper price band, indicating strong market sentiment. The company plans to use the IPO proceeds primarily for capital expenditure for a Phase II Quartz Processing Plant, purchasing electric dump trucks, solar energy integration at mines, and prepayment of borrowings.
Impact:
This strong subscription and positive grey market premium suggest high investor confidence in Midwest's business prospects and future growth. The successful listing could attract further investment into similar niche industrial companies and boost investor sentiment for the industrial goods sector.
Rating: 8/10
Difficult terms:
- IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time to raise capital.
- Basis of Allotment: The process of determining how many shares each investor will receive if the IPO is oversubscribed.
- Mainline Public Issue: Refers to IPOs of larger, established companies, as opposed to SME IPOs.
- Subscribed: Means the number of times the total offered shares have been applied for by investors. For example, 87.9 times subscribed means investors applied for shares worth 87.9 times the number of shares available.
- Non-Institutional Investors (NIIs): Investors who apply for shares above the retail investor limit but are not Qualified Institutional Buyers. This typically includes high-net-worth individuals and corporate bodies.
- Qualified Institutional Buyers (QIBs): Large institutional investors like mutual funds, foreign institutional investors, pension funds, etc., that are regulated by SEBI.
- Retail Investors: Individual investors who apply for shares up to a certain limit (currently ₹2 lakh in India).
- Registrar: A company that handles the administrative aspects of an IPO, such as managing applications, share allotment, and refunds. Kfin Technologies is the registrar in this case.
- Grey Market: An unofficial market where IPO shares are traded before they are listed on the stock exchange.
- Unlisted Shares: Shares of a company that are not traded on any public stock exchange.
- Listing Date: The date on which a company's shares officially begin trading on a stock exchange.
- Red Herring Prospectus (RHP): A preliminary prospectus filed with regulatory bodies that contains most of the details of an IPO but may be subject to change.
- Capex (Capital Expenditure): Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
- Wholly Owned Subsidiary: A company controlled entirely by another company, which owns more than 50% of its voting stock.
- Material Subsidiary: A subsidiary whose net worth or income constitutes more than 20% of the consolidated net worth or income of the parent company.
- General Corporate Purposes: Funds used by a company for various operational needs, including marketing, salaries, and administrative expenses, which are not tied to a specific project.