CMPDI IPO: A look at its strengths, risks and financials from RHP

CMPDI IPO: The initial public offering of Central Mine Planning & Design Institute, a subsidiary of Coal India Ltd, is all set to open for subscription on March 20. The issue will end on March 24.

The ₹1,842.12 crore IPO, with a price range of ₹163 to ₹172 per share, is an offer for sale (OFS) of 10.71 crore shares, with no fresh issue component.

As the issue will open on Friday, here's a look at its strengths, risks and financials from the red herring prospectus (RHP).

CMPDI IPO: Strengths

• CMPDI is a multidisciplinary organisation, providing a comprehensive range of services that encompass the whole spectrum of consultancy solutions from coal and mineral exploration, environmental services, laboratory services, geomatics services, mine planning and design services, coal beneficiation services and up to mine closure activities under one roof.
• With around 50 years of experience, it offers extensive expertise in the execution of an array of coal exploration projects. The company has executed more than 700 geological reports in relation to integrated coal exploration projects in the last ten years. Additionally, it has prepared over 300 hydrogeological reports since April 2021, primarily for the mining sector.
• It is equipped with advanced infrastructure to back various activities, including one of the largest domestic fleets of exploratory drills for coal and minerals. Its inventory includes geophysical loggers, hydrostatic drills, seismographs, seismic vibrators, gravimeters, ground-penetrating radar, Res2DINV, Res3DINV, RADAN, spectral enhancement and resistivity imaging systems.
• CMPDI has an experienced management team backed by a committed employee base.

CMPDI IPO: Risks

• The company's business is largely dependent on its top 10 clients, who contributed to 95%, 95.5% and 95.8% of revenue from operations in FY25, FY24 and FY23, respectively. Loss of any of these clients can affect business.
• Coal India and its subsidiaries accounted for 67.1%, 80.2% and 82.7% of its revenue in the fiscal years 2025, 2024 and 2023, respectively. Any decline in services from Coal India and its arms can impact business and financial condition.
• CMPDI is dependent on government funding for its drilling and exploration activities, and any change in policy decisions or budget reallocation can impact financial conditions and cash flows.
• Non-availability of credit ratings can restrict the company's access to capital and thereby affect business, financial conditions and results of operations.

CMPDI IPO: Financials

CMPDI IPO GMP

CMPDI's unlisted shares, according to investorgain.com and media reports, are trading at ₹176, reflecting a grey market premium of 2.33% or ₹4 compared to the upper price band of ₹172.