CMPDI IPO: Coal India's subsidiary to hit primary market on March 20; what we know so far

CMPDI IPO: The initial public offering of Coal India's subsidiary, Central Mine Planning & Design Institute Limited (CMPDI), will open for subscription on March 20. The company has not announced the price band yet.

The bidding for anchor investors will occur on March 18. The issue will end on March 24.

The initial share sale is solely an offer for sale (OFS) of 107,100,000 shares by promoter Coal India Ltd. There is no fresh issue component.

Since there is no fresh issuance of shares, the company will not get any proceeds from the offer. The money raised will go to the promoter.

"Our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity and a public market for the equity shares in India," the firm said in its red herring prospectus (RHP).

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35% for retail individual investors (RIIs) and the remaining 15% for non-institutional investors (NIIs).

CMPDI offers consultancy and support services for the whole spectrum of coal and mineral exploration, mine planning and design services.

Its services include infrastructure engineering, geomatics, specialised technology services, environmental management, and management systems, largely for the coal industry, as well as for other minerals.

It is among the largest domestic coal and mineral consultancy firms, with a market share of 61% in the financial year 2024-25 and is the preferred consultant for Coal India. Its services span the complete spectrum of mining operations, ranging from initial exploration to closure of mines.

The company assist the Ministry of Coal in making strategic decisions and initiatives relating to the coal sector at the national level. It also helps the Ministry of Petroleum and Natural Gas with matters related to coalbed methane.

IDBI Capital Markets & Securities and SBI Capital Markets are the merchant bankers of the issue, while KFin Technologies is the registrar.