Coal India shares in focus as CMPDI Rs 1,842 crore IPO opens March 20

Shares of Coal India Ltd (CIL) are likely to remain in focus on Monday following the announcement of the initial public offering (IPO) of its subsidiary, Central Mine Planning and Design Institute Ltd (CMPDI).

CMPDI, a consultancy arm of Coal India, has announced that its Rs 1,842 crore IPO will open for subscription on March 20 and close on March 24.

The issue will be entirely an offer for sale (OFS) of 10.71 crore shares by Coal India, with no fresh issue component.

The price band for the issue has been fixed at Rs 163–172 per share. CMPDI shares will have a face value of Rs 2 each.

"Red Herring Prospectus (RHP), of CMPDIL, a wholly-owned subsidiary of CIL, was filed with Sebi, BSE and NSE. The RHP filing pertains to the proposed initial public offering (IPO) of CMPDIL, comprising an offer for sale of up to 107,100,000 equity shares by CIL. IPO from its subsidiary is a positive development for Coal India. We maintain a 'HOLD' recommendation on Coal India," Equinomics Research stated.

CMPDIL provides consultancy services to Coal India and its subsidiaries across various areas, including coal exploration, mine planning and design, coal beneficiation and utilisation, allied engineering services, environmental engineering, information and communication technology, laboratory services, and field services.

Earlier this year, another Coal India subsidiary, Bharat Coking Coal Limited (BCCL), was listed on stock exchanges on January 19.

Separately, Kiran Jani, Head of Technical Research at Jainam Broking, said, "Coal India looks very promising at current market prices. One can consider entering from an investment perspective. The Rs 400–420 range is a major base support zone. Investors should keep a strict stop loss below these levels, while the stock may move towards Rs 500 in the coming period."