In a significant step towards disinvestment and monetisation of assets, Central Mine Planning and Design Institute Ltd (CMPDIL), a fully owned subsidiary of Coal India Ltd, has filed its draft red herring prospectus (DRHP) with market regulator SEBI for an initial public offering (IPO). The IPO, according to the document dated Monday, involves an offer for sale (OFS) of up to 71.4 million shares, with no fresh equity issuance from CMPDIL itself.

This development marks a strategic move in Coal India’s broader plan to list and monetise its subsidiaries, including Bharat Coking Coal Ltd (BCCL), whose IPO plans are also underway. However, BCCL has not yet filed any public IPO papers.

Details of the Offering

As per the DRHP, Coal India will offload the shares in the IPO, aiming to unlock value from CMPDIL while maintaining operational control. The company has not yet disclosed the pricing or valuation of the issue. CMPDIL will continue operating independently as a subsidiary while allowing investors to participate in India’s largest coal and mineral consultancy firm.

The book-running lead managers (BRLMs) for the offering are SBI Capital Markets and IDBI Capital Markets & Securities, two of India's most trusted investment banks when it comes to handling public offers of government-linked entities.

CMPDIL’s Profile: India’s Largest Coal & Mineral Consultancy

CMPDIL is widely recognised as the largest consultancy firm in India for services related to coal exploration, mine planning, and mineral development. It offers end-to-end technical and project support to Coal India and various other public and private sector enterprises.

Its services include:

• Mine planning and design

• Geological exploration and drilling

• Environmental management

• Coal quality assessment and monitoring

• Infrastructure development advisory

This makes CMPDIL a strategic backbone for India’s coal mining industry, and hence its IPO will attract attention from both institutional and retail investors looking to gain from India's push towards energy security and infrastructure development.

Coal India’s Divestment Strategy and BCCL IPO

Coal India Ltd, a Maharatna PSU, has been actively working with the government to achieve its asset monetisation targets as outlined in India’s disinvestment roadmap. The company is also preparing for the IPO of Bharat Coking Coal Ltd (BCCL), another key subsidiary that operates coking coal mines in Jharkhand.

Though BCCL's DRHP has not been publicly filed yet, a senior executive cited in Hindu Businessline last week indicated that IPO papers for BCCL would be submitted "soon". The dual IPO move suggests a clear roadmap for Coal India to not only raise capital but also to enhance operational autonomy and corporate governance in its subsidiaries.

Current Market Context: Why Now?

The timing of CMPDIL’s IPO comes at a period when several Indian firms have either postponed or reduced the size of their public offerings due to global economic uncertainties in 2025. Volatile capital markets, concerns over interest rates, and a shift in investor sentiment have affected IPO fundraising activity in India, especially in the first half of the year.

In contrast, 2024 witnessed a blockbuster IPO season, with massive oversubscriptions and post-listing rallies. CMPDIL’s IPO could be a test case for investor appetite in a lukewarm 2025 environment. However, the company’s strong fundamentals, government backing, and strategic relevance may help generate investor interest despite market headwinds.

Role of SBI Capital and IDBI Capital

SBI Capital Markets and IDBI Capital Markets & Securities have been appointed as the book-running lead managers for this IPO. Their role will be pivotal in:

• Structuring the offering

• Pricing strategy

• Institutional roadshows and investor outreach

• Ensuring regulatory compliance

These two firms have an established track record of handling large-cap PSU listings, adding to the credibility of the process.

What Next for CMPDIL IPO?

CMPDIL’s draft papers will undergo review by SEBI, and once approved, the company will set a date for subscription opening. Further announcements regarding price bands, lot size, and expected listing date will be made in the red herring prospectus (RHP).

Post-listing, CMPDIL is expected to remain under majority control of Coal India, with the government possibly evaluating a phased dilution strategy in the future depending on market feedback and strategic requirements.

Strategic Importance of the IPO

This IPO is not just about capital mobilisation. It is a strategic signal from the Indian government and Coal India towards:

• Unlocking value from public sector units

• Improving transparency and corporate governance

• Encouraging public participation in state assets

• Diversifying Coal India’s revenue streams

By bringing CMPDIL to the market, Coal India is creating a model for future PSU listings in mining, consultancy, and infrastructure sectors.

Conclusion

The CMPDIL IPO is a landmark step for both Coal India and the government’s disinvestment programme. It represents a push towards market efficiency, stakeholder value creation, and improved public access to the wealth of India’s public sector enterprises.

For investors, the upcoming listing provides a unique opportunity to invest in India’s premier coal and mineral consultancy firm, backed by the robust fundamentals of Coal India and the government’s long-term infrastructure plans.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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