CMPDI IPO GMP turns nil as Coal India arm’s issue barely scrapes through with 1.05x subscription

The ₹1,842-crore initial public offering (IPO) of Central Mine Planning & Design Institute (CMPDI), the consultancy arm of state-owned Coal India , saw a lacklustre response from investors amid weak secondary market sentiment driven by geopolitical tensions in the Middle East.

The issue, which opened for bidding on March 20, managed to just scrape through on the final day, closing with a marginal 1.05 times subscription. The overall demand was largely supported by institutional investors, while participation from retail and non-institutional investors remained subdued.

According to exchange data, the qualified institutional buyers (QIB) portion was subscribed 3.48 times, led by mutual funds and domestic financial institutions. In contrast, the non-institutional investor (NII) segment saw weak traction at 0.35 times subscription, while the retail individual investors (RII) category was subscribed just 0.33 times.

The employee quota also witnessed muted interest at 0.21 times, while the shareholder reservation portion was subscribed 0.36 times.

As per the allocation structure, up to 50% of the issue is reserved for QIBs, at least 35% for retail investors, and the remaining 15% for NIIs.

GMP turns flat amid weak demand

The grey market premium (GMP) for CMPDI has dropped sharply following the tepid response to the issue and volatility in broader markets. The GMP dropped to zero on the final day, down from a peak of ₹22 on March 16. It had already slipped to ₹1 by the second day of bidding.

The IPO is entirely an offer for sale (OFS) of 10.71 crore equity shares, meaning the proceeds will go to the selling shareholders rather than the company. The share allotment is expected to be finalised on March 25, with a tentative listing scheduled for March 30 on the BSE and NSE.

Steady financial performance

CMPDI is among India’s largest coal and mineral consultancy firms, with a 61% market share in FY25, and serves as the preferred consultant to Coal India.

The company has reported steady financial growth in recent years. For the nine months ended December 2025, it posted total income of ₹1,543.93 crore and a profit after tax of ₹425.36 crore.

For FY25, total income rose to ₹2,177.53 crore from ₹1,770.18 crore in FY24, while net profit increased to ₹666.91 crore from ₹503.23 crore in the previous fiscal.

EBITDA grew to ₹915.71 crore in FY25 from ₹764.44 crore in FY24, reflecting improved operating performance.

CMPDI’s net worth stood at ₹2,041.85 crore in FY25, with total assets at ₹2,682.80 crore, indicating a strengthening balance sheet.

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