The initial public offering (IPO) of Central Mine Planning & Design Institute Limited, an arm of state-owned Coal India, which opened for subscription today, March 20, received a muted response from investors.
By the end of the day, the issue was subscribed just 0.07 times, with 53.74 lakh shares bid for against the 7.98 crore shares on offer, according to exchange data.
The retail portion was subscribed 0.10 times, while the non-institutional investor (NII) segment was booked just 0.05 times, and the qualified institutional buyer (QIB) portion has not yet opened for bidding. Meanwhile, the employee quota was subscribed 0.06 times.
Central Mine Planning & Design Institute IPO details
The issue is entirely an offer for sale (OFS) of 10.71 crore shares with a face value of ₹2 each. The price band for the issue has been set at ₹163 to ₹172 per share, resulting in an overall OFS size of ₹1,842.12 crore.
Coal India is the sole promoter and selling shareholder in the OFS. IDBI Capital Markets & Securities Limited and SBI Capital Markets Limited are the book-running lead managers of the issue, while KFin Technologies Limited is the registrar of the Central Mine Planning IPO.
Since the issue is entirely an OFS, the company will not receive any proceeds from the offer. Coal India, as the promoter and selling shareholder, will receive the proceeds after the deduction of offer-related expenses and relevant taxes.
Meanwhile, the grey market premium (GMP) of the Central Mine Planning & Design Institute as of today was 02, which indicates the stock might list slightly above the issue price.
About the company
Central Mine Planning & Design Institute offers consultancy and support services for coal and mineral exploration, along with mine planning and design services. It also provides infrastructure engineering, environmental management, geomatics, specialised technology services, and management systems, primarily for the coal industry as well as other minerals, as per the RHP.
Based on a CRISIL report, the company claims to be the largest coal and mineral consultancy firm in India, with a 61% market share in FY25, and is the preferred consultant for Coal India Limited.
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