Central Mine Planning & Design Institute IPO opens on Friday: Should you subscribe to it?

The initial public offering (IPO) of Central Mine Planning & Design Institute (CMPDI) shall open for subscription on Friday, March 20. The Coal India subsidiary shall be selling its shares for Rs 163-172 apiece, with a lot size of 80 equity shares and its multiples thereafter. The issue will close for subscription on Tuesday, March 24.

The Rs 1,842 crore IPO of CMPDI is entirely an offer-for-sale (OFS) of up to 10,71,00,000 equity shares by its promoter Coal India Ltd. The company will not receive any proceeds from the issue and the entire sum will go to the selling shareholders. At the current valuations, CMPDI commands a market capitalization over Rs 12,280 crore.

Incorporated in 1974, Central Mine Planning & Design Institute offers consultancy and support services across the spectrum of coal and mineral exploration and mine planning and design. Its services also include infrastructure engineering, environmental management, specialised technology services, and management systems, primarily for the coal industry and other minerals.

Ahead of its IPO, Central Mine Planning & Design Institute raised Rs 469.74 crore from 22 anchor investors as it allocated 2,73,10,500 equity shares at Rs 172 apiece. Anchor book included names like LIC of India, Nippon India Mutual Fund (MF), ICICI Prudential MF, Baring Private India Equity Fund, GIC of India, Societe Generale, Rajasthan Global Securities and more.

CMPDI has reserved 1,07,10,000 equity shares for eligible shareholders of Coal India, while it has reserved 53,55,000 equity shares of its eligible employees. It has reserved 50 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of allocation. Retail investors will have 35 per cent reservation in the IPO.

For the nine months ended on December 31, 2025, CMPDI reported a net profit of Rs 425.36 crore with a revenue of Rs 1,543.93 crore. The company clocked a net profit of Rs 666.91 crore with a revenue of Rs 2,177.53 crore for the financial year 2024-25. It is the second IPO of Coal India subsidiary, after Bharat Coking Coal Ltd(BCCL), which was listed in January 2026.

IDBI Capital Markets and SBI Capital Markets are the book-running lead managers of CMPDI IPO, and Kfin Technologies Ltd will serve as the registrar. Shares of the company shall be listed on both BSE and NSE on March 30, 2025. Its grey market premium (GMP) dropped to Rs 4 from Rs 11. Here's what brokerage firms say about the IPO of Central Mine Planning & Design Institute:  

Choice Broking Rating: Subscribe CMPDI's role as a custodian of the country’s coal & lignite data, along with its integrated, end-to-end capabilities across exploration, mine planning, environmental services, & closure, strengthens its competitive advantage & entry barriers. It is gradually diversifying into non-coal minerals supported by increasing government focus on mineral auctions & global opportunities, said Choice Borking.

"The issue is valued at 17.5 times P/E and 13.9 times EV/Ebitda, which appears reasonable given its strong parentage, consistent business flow, & strategic positioning in a niche segment. While risks such as regulatory uncertainties, & exposure to government funding persist, its stable earnings profile, market leadership, and growth visibility support a favourable risk-reward," it added with a 'subscribe' rating.  

Canara Bank Securities Rating: Subscribe Central Mine Planning & Design Institute is India’s leading mining consultancy with a 61 per cent market share in FY25 and revenue of Rs 2,102.8 crore, driven by a diversified mix across exploration, mine planning, environmental services, and geomatics, supported by strong technical capabilities, said Canara Bank Securities.

"It has delivered robust growth with revenue, Ebitda and PAT CAGRs of 23 per cent, 52 per cent and 50 per cent, respectively, along with healthy cash conversion. Valued at 18 times P/E, CMPDI remains exposed to government and Coal India dependence, but its strong positioning and improving profitability support a 'subscribe' view," it said.  

Arihant Capital Markets Rating: Neutral CMPDI is positioned to benefit from India’s mandate to enhance energy security through increased domestic coal production and the auctioning of commercial mineral blocks. Its transition toward a 'one-stop-shop' consultancy for both coal and non-coal minerals, combined with a capital-light business model, provides a stable foundation for steady cash flow generation, said Arihant Capital.

"However, this growth potential is balanced by a heavy structural dependence on its parent entity and the overarching long-term risks associated with the global energy transition. The issue is valued at a P/E ratio of 21.65 times, based on annualized PAT of FY26 EPS of Rs 7.94. We are recommending a 'neutral' rating for this issue," it added.  

Master Capital Services Rating: Subscribe for long-term CMPDI is strategically positioned as one of India’s leading mining consultancy companies, with strong expertise across exploration, mine planning and design, environmental services, and geomatics, said Master Capital Services.

"CMPDI is well placed to benefit from the growing demand for mining consultancy and exploration services in India. Investors may consider the IPO as a potential long-term investment opportunity," it added citing dependence on top clients for revenue and shift to renewable demand as its key risks.  

Kantilal Chhaganlal Securities Rating: Subscribe for long-term CMPDI is valued the company at a P/E of 17.5-18.5 times and P/B of 5.5-6 times based on FY25 earnings. The valuation appears reasonable considering its strong profitability, 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, said Kantilal Chhaganlal Securities.

"However, the absence of fresh capital, 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 per cent of PAT or 5 per cent of Net Worth, whichever is higher, " it added with a 'subscribe' for long-term rating.  

Equivision Rating: Subscribe Favorable industry outlook supports growth visibility, as coal is expected to remain a key energy source in India until at least FY2035. The company's capabilities in mining consultancy and its infrastructure for exploration of critical minerals, including rare earth elements, position it well to benefit from sustained sector demand, said Equivision with a 'subscribe' rating.