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CMPDI IPO Day 2 LIVE: The initial public offering of the Central Mine Planning and Design Institute Ltd, which is a subsidiary of the state-controlled Coal India, was 7% subscribed on its first day of the share sale on Friday, March 20.

The ₹1,842-crore Central Mine Planning IPO is set to close on March 24.

As per market experts, CMPDI IPO GMP is at ₹1.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Central Mine Planning & Design Institute shares is indicated as ₹173.5 apiece, which is 0.87% higher than the IPO price of ₹172.

CMPDI IPO price band is set between ₹163-172 each, which values the company at approximately ₹12,280 crore at the upper price limit, as announced by the company.

The offering will consist entirely of an offer-for-sale (OFS) of 10.71 crore shares, amounting to ₹1,842.12 crore at the higher price point, by Coal India, with no new issue component involved.

CMPDIL was established in 1975 as a fully-owned subsidiary of Coal India.

It provides consultancy and support services covering all aspects of coal and mineral exploration, in addition to mine planning and design services.

(Stay tuned for more updates)

Market Dominance with High Concentration Risk: The company holds a commanding 61% market share in the Indian coal and mineral consultancy sector and serves as the primary technical partner for Coal India Limited (CIL). While this provides a steady and predictable revenue stream, over 67% of its revenue is derived from this single client. The stability of the order book is therefore inherently tied to CIL’s capital expenditure and procurement policies rather than broad market dynamics.

Near-Term Growth Aligned with National Targets vs. Energy Transition: The company is well-positioned to benefit from India’s target to increase raw coal production to 1.5 billion tonnes by 2030, which requires massive exploration and design support. Conversely, the global and domestic shift toward renewable energy acts as a structural ceiling for its core business. Until its newer ventures into "Critical Minerals" and solar energy consultancy contribute a significant portion of total revenue, its valuation remains sensitive to long-term decarbonisation headwinds.

Capital-Light Financials vs. Historic Payout Patterns: The business operates an efficient, consultancy-driven model that consistently generates healthy margins and positive cash flows without requiring heavy machinery investment. However, as a wholly-owned subsidiary of a PSU, the company has historically used its cash reserves for high dividend payouts and buybacks to the promoter. Future growth depends on whether listing will shift this focus from dividend distribution toward aggressive reinvestment in non-coal mineral sectors.

"CMPDIL’s IPO, priced at ₹163– ₹172 per share, values the company at a P/E of 17.5x – 18.5x and P/B of 5.5x –6.0x based on FY25 earnings. The valuation appears reasonable considering its strong profitability (RoNW 36%), high-margin asset-light consultancy model, and debt-free balance sheet. Its dominant market position and steady business flow from Coal India Limited further support the valuation. However, the absence of fresh capital (OFS issue), high dependence on Coal India, and PSU-related valuation discount limit significant upside.

CMPDI follows the CPSE Capital Restructuring Guidelines, which mandate a minimum annual dividend of 30% of PAT or 5% of Net Worth, whichever is higher. For the nine-month period ended December 31, 2025, the company disbursed an interim dividend of ₹1,49.94 crores. We assign a Long Term Apply rating and prefer to monitor performance for a few quarters post listing," said Kantilal Chhaganlal Securities Pvt Ltd.

CMPDI IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 5,355,000 equity shares, and shareholders portion has been reserved up to 10,710,000 equity shares.

CMPDI IPO Day 2 LIVE: "Central Mine Planning & Design Institute Limited (CMPDIL), a subsidiary of Coal India, is a government-backed mining consultancy with a strong ~61% market share. The company operates across the entire mining lifecycle and benefits from high entry barriers, strong parentage, and long-standing government relationships. It has delivered robust financial performance, with ~23% revenue CAGR, healthy EBITDA margins of 40%+, and zero debt, reflecting strong operational efficiency.

With solid return ratios (RoE ~36.7%) and stable cash flows, CMPDIL stands well-positioned within the PSU ecosystem. While it remains largely aligned with the coal sector, ongoing diversification efforts add to its long-term potential. Overall, the IPO appears fairly priced and offers a stable opportunity for investors seeking consistent and relatively predictable returns," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.

(a) Geological Exploration & Resource Evaluation

(b) Mine Planning & Design Services

(c) Environmental Planning & Monitoring Services

(d) Geomatics, Remote Sensing & Survey Services

Founded in 1975, the Central Mine Planning & Design Institute provides consultancy and support services encompassing all aspects of coal and mineral exploration, along with mine planning and design. It is recognized as one of the largest consultancy firms for coal and minerals in India.

Their offerings also encompass infrastructure engineering, environmental management, specialized technology services, and management systems, primarily focused on the coal sector and other minerals.

They hold a dominant position as one of the largest consultancy companies for coal and minerals in India, boasting a market share of 61.0% in Fiscal 2025, and are the preferred consulting firm for Coal India.

The consultancy firm specializing in coal and minerals is set to raise ₹1,837.8 crore through an initial share offering, which values the company at ₹12,280.8 crore at the highest price point.

This initial public offering consists solely of a sale of 10.71 crore shares by Coal India, with no component of new shares being issued.

The company will not benefit financially from the public offering. All funds raised, aside from the expenses related to the offering, will go directly to Coal India.

IDBI Capital Markets & Securities and SBI Capital Markets are serving as the merchant bankers for Central Mine Planning & Design Institute IPO.

Swastika Investmart stated that, considering its discounted valuation and debt-free balance sheet, CMPDI is a "Subscribe" for a short-to-medium-term tactical approach. Nonetheless, investors should consider the immediate risks associated with its entire Offer for Sale (indicating no new capital for expansion) and its significant dependence on Coal India for more than 90% of its revenue.

Arihant Capital Markets has indicated that, in the medium term, the firm is well-equipped to take advantage of India's initiative to improve energy security through increased production of domestic coal and the auctioning of commercial mineral blocks. Its shift towards a "one-stop-shop" consultancy encompassing both coal and non-coal minerals, along with a capital-light business model, offers a solid basis for consistent cash flow generation.

Nonetheless, this potential for growth is tempered by a significant structural reliance on its parent company and the broader long-term challenges tied to the global energy transition. At the upper price band of ₹172, the offering is assessed with a P/E ratio of 21.65x, based on an annualized PAT of FY26 EPS of ₹7.94. The brokerage has assigned a “Neutral” rating for this offering.

Tentatively, CMPDI IPO basis of allotment of shares will be finalised on Wednesday, March 25, and the company will initiate refunds on Friday, March 27, while the shares will be credited to the demat account of allottees on the same day following refund. CMPDI share price is likely to be listed on BSE and NSE on Monday, March 30.

The public offering for Central Mine Planning and Design Institute Ltd, a subsidiary of the state-owned Coal India, saw a 7% subscription on its first day of the share sale on Friday.

According to NSE data, the IPO received bids totaling 52,44,320 shares, compared to 7,97,89,500 shares available for sale.

The Retail Individual Investors (RIIs) category had a subscription rate of 10%, while the segment designated for non-institutional investors received a 5% subscription.

CMPDI IPO Day 2 LIVE: As per market experts, CMPDI IPO GMP is at ₹1.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Central Mine Planning & Design Institute shares is indicated as ₹173.5 apiece, which is 0.87% higher than the IPO price of ₹172.

According to the activities of the grey market over the last 11 sessions, the current GMP ( ₹1.5) is indicating a downward trend. Experts note that the lowest GMP recorded is ₹0.50, while the peak GMP reached ₹24.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players.

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