Coal India arm CMPDI IPO opens for subscription: Check brokerages' views, valuation and key details

The initial public offering (IPO) of Coal India Ltd's (CIL's) subsidiary, Central Mine Planning and Design Institute Ltd (CMPDI), opened for subscription on Friday and will close on March 24.

The issue is entirely an offer for sale (OFS) of 10.71 crore shares by CIL, with no fresh issue component. The price band has been fixed at Rs 163–172 per share, and the face value of CMPDI shares is Rs 2 each.

CMPDI operates as a mining consultancy arm of Coal India and plays a key role in exploration, mine planning, environmental services and mine closure.

Choice Broking highlighted the company's strategic positioning and growth prospects. "The company'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. Further, the company is gradually diversifying into non-coal minerals supported by increasing government focus on mineral auctions & global opportunities. The mining consultancy market is also expected to grow at CAGR of ~4.8 per cent, providing a steady growth runway," it said.

"Backed by its technical expertise & long-standing relationship with CIL, CMPDIL is well placed to capture these opportunities while expanding its service offerings. At the upper price band, the issue is valued at ~17.5x P/E and ~13.9x EV/EBITDA (on TTM data as on 31st Dec.25), 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, the company's stable earnings profile, market leadership, and growth visibility support a favourable risk-reward. Thus, we recommend a 'SUBSCRIBE' rating," it added.

Anand Rathi Research said the IPO appears fully priced and assigned a 'Subscribe Long Term' rating.

In a separate development, another Coal India subsidiary -- Bharat Coking Coal Ltd (BCCL) -- was listed on the stock exchanges earlier this year on January 19.