Coal India Sees Potential for Substantial Gains Following Central Mine Planning IPO

Central Mine Planning & Design Institute IPO Set to Hit Dalal Street

Key Highlights:

• The IPO of Central Mine Planning & Design Institute, a subsidiary of Coal India, is expected to raise ₹1,842 crore at the upper end of the price band.
• The offer will open for bidding on Friday, March 20 and close on Tuesday, March 24.
• The company will sell its shares at a price band of ₹163 to ₹172.

Investor Interest and Listing Gain:

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• The grey market activity suggests a 12% listing gain for investors, with the Central Mine Planning IPO GMP today at ₹21.
• This implies a potential return on investment for investors.

Coal India's Potential Windfall:

• Coal India, the sole seller in the issue, is expected to make a staggering 57,233% return based on the weighted average cost of acquisition of ₹0.3 per share.
• The company's total investment to acquire 107,100,000 shares is ₹3.2 crore, while the total proceeds raised will be ₹1,842.12 crore, leaving ₹1,838.92 crore as a profit.

Recent IPO Performance:

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• The listing day action has been subdued, with only 13 out of 48 IPOs listed in 2026 in profit, and 35 in losses.
• The average listing gain is less than 3%.

Company Profile:

• Central Mine Planning provides consultancy and support services for coal and mineral exploration with almost five decades of experience.
• The company reported a profit of ₹425 crore for a nine-month period ended December 2025, up roughly 9% from the year-ago period.

Issue Details:

• Book-running lead managers: IDBI Capital Markets and Securities and SBI Capital Markets.