Central Mine Planning IPO Sees Muted Opening, Subscribed at 0.07 Times, GMP Suggests Flat Listing

Central Mine Planning & Design Institute Limited IPO Receives Muted Response from Investors

Overview

The initial public offering (IPO) of Central Mine Planning & Design Institute Limited, an arm of state-owned Coal India, opened for subscription on March 20. However, the issue received a muted response from investors, with the issue being subscribed just 0.07 times by the end of the day.

Subscription Details

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

As of March 20, the retail portion of the issue was subscribed 0.10 times, while the non-institutional investor (NII) segment was subscribed 0.05 times. The qualified institutional buyer (QIB) portion has not yet opened for bidding. The employee quota was subscribed 0.06 times.

IPO Details

The issue is entirely an offer for sale (OFS) of 10.71 crore shares with a face value of ₹2 each. The price band for the issue has been set at ₹163 to ₹172 per share, resulting in an overall OFS size of ₹1,842.12 crore. Coal India is the sole promoter and selling shareholder in the OFS.

Grey Market Premium

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

The grey market premium (GMP) of the Central Mine Planning & Design Institute as of March 20 was 2, indicating that the stock might list slightly above the issue price.

Company Overview

Central Mine Planning & Design Institute offers consultancy and support services for coal and mineral exploration, along with mine planning and design services. The company claims to be the largest coal and mineral consultancy firm in India, with a 61% market share in FY25, and is the preferred consultant for Coal India Limited.