Central Mine Planning IPO Sees Strong QIB Demand, Fails to Meet Subscription Targets Elsewhere

Central Mine Planning IPO Receives Tepid Response from Investors

Key Highlights:

• Central Mine Planning's initial public offering (IPO) received a mixed response from investors, with heavy subscription from QIBs on the final day of the bidding process on March 24.
• The IPO was subscribed 25% by the second day of bidding on March 23, with a total offer of 7,97,89,500 shares and bids for 8,37,13,200 shares.

Subscription Status:

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• The QIB segment saw a 3.48 times subscription, while the retail individual investors quota was subscribed 33% of their allotted portion.
• The non-institutional investor (NII) category was subscribed 35%, while the employee and shareholder portions were booked 21% and 36%, respectively.

Grey Market Trend:

• The grey market trend for Central Mine Planning IPO remains weak, with a ₹0 GMP as of today, down from the peak of ₹24.
• At the current levels, the Central Mine Planning IPO listing price could be the same as the offer price.

IPO Details:

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• Coal India subsidiary raised ₹470 crore from anchor investors on March 18.
• The ₹1,842-crore IPO has a price band of ₹163–₹172 per share, valuing the company at approximately ₹12,280 crore at the upper end.
• The IPO was entirely an offer-for-sale (OFS) of 10.71 crore shares by Coal India, with no fresh issue component.

Listing Details:

• The investors will now look forward to the Central Mine Planning IPO allotment status, expected to be finalised on March 25.
• Shares of the PSU stock are slated to list next week on BSE and NSE.