Coal India’s CMPDI Subsidiary Files for IPO, Plans Major Stake Sale

Coal India Ltd has officially initiated the IPO process for its subsidiary, Central Mine Planning & Design Institute Ltd (CMPDI), filing its draft red herring prospectus (DRHP) with SEBI. The offering includes a stake sale of up to 71.4 million shares by promoter Coal India via an offer for sale (OFS).

Key Highlights:
IPO Structure: CMPDI’s IPO will feature an OFS of 71.4 million shares, allowing Coal India to unlock value from its subsidiary.

Bookrunners Appointed: IDBI Capital Markets and SBI Capital Markets have been designated as book-running lead managers (BRLMs) for the issue.

Strategic Listing: The IPO aligns with Coal India’s broader disinvestment strategy, aimed at monetizing assets and improving operational efficiency.

Financial Performance: CMPDI reported a 33% YoY increase in net profit, reaching ₹667 crore in FY25, reinforcing its strong financial position.

Market Expansion: The company specializes in coal prospecting, mine planning, and consultancy services, playing a crucial role in India’s mining sector.

Government Push: The listing is part of India’s ₹47,000 crore disinvestment target for FY25-26, aimed at unlocking value from public sector enterprises.

This IPO marks a significant milestone for CMPDI, positioning it for greater market visibility and investment opportunities.

Source: Zee Business, The Hindu Business Line, MSN