Coal India arm, Central Mine Planning & Design Institute (CMPDI) IPO opens today. The issue aims to raise Rs 1,842 crore and is entirely an offer for sale, with the promoter group Coal India offloading 10.71 crore equity shares with a face value of Rs 2 each.
The price band for the IPO is fixed between Rs 163 – 172, with the IPO currently trading at a premium in the grey market.
| Central Mine Planning IPO | Key IPO details |
| Price Band | Rs 163–172 per share |
| GMP | 2% |
| IPO Allotment date | March 25 |
| Listing date | March 30 |
Central Mine Planning IPO: GMP sees sharp drop
On Monday, the shares of the company were trading at a premium of nearly 13% in the unlisted markets, suggesting a listing price of Rs 194 (on the upper end of the price band). However, since then, CMPDI’s premium has seen wild swings.
The double-digit premium is now down to just 2.33%, indicating a listing price of Rs 176, based on the upper end of the price band.
Central Mine Planning IPO: Key dates
The Mini Ratna will open its issue for public biddingtoday- March 20. The issue will be open for a total of three days and will close on March 24. Since stock markets are closed on weekends, investors cannot bid on March 21 and March 22.
The share allotment is expected to take place by March 25, while the refund process and credit of shares are expected by March 27. The company is expected to get listed on stock exchanges by March 30.
Central Mine Planning IPO: Key risks to monitor
The company is heavily reliant on its top ten customers for revenue generation, having contributed over 90% of the revenue over the last three fiscals. Loss of these clients could adversely affect the company’s business, CMPDI stated in its RHP.
Central Mine Planning depends significantly on Coal India and government funding for its operations. Any decline from this side can heavily impact its operations. Additionally, risks related to debt repayments, related party transactions, and legal and regulatory proceedings should be monitored.
Central Mine Planning IPO: Lot size
Retail applicants may bid for a minimum of one lot comprising 80 shares, aggregating to Rs 13,760. The lot size for small non-institutional investors stands at 15 lots of 1,200 shares, amounting to Rs 2,06,400, while for big NIIs, the lot size is 73 lots of 5,840 shares, totalling Rs 10,04,480.
Central Mine Planning IPO: Expert take
SBI Securities has not rated the IPO but pointed out that the valuation metrics compared to peers.“At the upper price band of Rs 172, the issue is valued at FY25 P/E and EV/EBITDA multiples of 18.4x/13.3x respectively based on post-issue capital,” said SBI Securities in a report.
On the CMPDI IPO, Arihant Capital in its report said, “At the upper band of INR 172, the issue is valued at a P/E ratio of 21.65x, based on annualized PAT of FY26 EPS of INR 7.94. We are recommending a “Neutral” rating for this issue.”