Midwest and Rahee Infratech files DRHP to raise funds via IPO

1 Oct 2024 , 01:37 PM

Midwest, one of the largest producers of Black Galaxy Granite, is gearing up for an initial public offering (IPO) after filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise ₹650 crore through this public offering.

The IPO will consist of a fresh issue of shares worth ₹250 crore and an offer for sale (OFS) amounting to ₹400 crore, with promoters offloading part of their stakes. The OFS includes up to ₹360 crore worth of shares being sold by promoter Kollareddy Rama Raghava Reddy and up to ₹40 crore by Guntaka Ravindra Reddy.

DAM Capital Advisors, Motilal Oswal Investment Advisors, and Intensive Fiscal Services Private are the lead managers for the Midwest IPO. KFin Technologies has been appointed as the registrar for the issue, ensuring smooth handling of the allotment process.

Midwest plans to deploy the net proceeds from the fresh issuance of shares for several strategic initiatives:

• ₹127.05 crore will be allocated for capital expenditure by Midwest Neostone, the company’s wholly-owned subsidiary, for the second phase of the quartz grit and powder processing plant.
• ₹25.75 crore is earmarked for the purchase of electric dump trucks for both Midwest and APGM, its material subsidiary.
• The company will invest ₹3.26 crore in integrating solar energy at selected mining locations.
• Additionally, ₹53.80 crore will be used to pre-pay or repay certain outstanding borrowings of the company and APGM. The remaining funds will be utilized for general corporate purposes.

Rahee Infratech Joins the IPO Bandwagon

Kolkata-based Rahee Infratech has also filed its DRHP with SEBI on September 30, signaling its intent to raise capital through an IPO. The company, specializing in railway civil engineering, construction, and manufacturing, plans to offer a combination of fresh shares and an OFS.

Rahee Infratech’s IPO includes a fresh issue of ₹420 crore, along with an offer for sale of up to 2.7 million equity shares by existing shareholders. The key stakeholders in the OFS include Pradeep Khaitan, Pawan Khaitan, Ravi Khaitan, Nandini Khaitan, and Shashi Khaitan.

Specialization and Expansion Plans

Rahee Infratech is known for its expertise in railway infrastructure, having completed 105 major railway bridges and 258.9 km of ballastless metro rail tracks. The company’s order book stood at ₹2,296.27 crore as of March 31, 2024, and ongoing projects span 18 states.

The company has four manufacturing units in West Bengal and Telangana and two steel fabrication facilities in West Bengal and Odisha. Partnerships with international firms like Pandrol and Tracktec GmbH further bolster its capabilities in advanced railway technology.

IPO Management and Investor Categories

IIFL Securities and Equirus Capital are managing Rahee Infratech’s IPO.