Central Mine Planning & Design Institute Limited (CMPDI), a wholly owned subsidiary of Coal India Limited (CIL), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a significant step toward its initial public offering (IPO).

Coal India Subsidiary CMPDI Files DRHP for IPO

Central Mine Planning & Design Institute Limited (CMPDI), a wholly owned subsidiary of Coal India Limited (CIL), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a significant step toward its initial public offering (IPO). The IPO will see Coal India offloading up to 71.4 million equity shares- representing a 10% stake in CMPDI- through a pure offer for sale (OFS). No new shares will be issued, and all proceeds from the sale will go to the parent company, Coal India.

IPO Structure and Details

The IPO consists entirely of an Offer for Sale (OFS) by Coal India, with no fresh capital being raised by CMPDI.
Up to 71.4 million shares, each with a face value of ₹2, will be offered.
The listing is planned on both the BSE and NSE.
SBI Capital Markets and IDBI Capital Markets are appointed as the book-running lead managers, while KFin Technologies will act as the registrar.
There will be a reservation in the IPO for eligible employees and existing shareholders, with the remainder available to the public.

About CMPDI

Established in 1975, CMPDI is India’s largest coal and mineral consultancy, providing end-to-end services in geological exploration, mine planning and design, environmental engineering, infrastructure development, and research. The company is a key advisor to Coal India and holds the largest market share in the Indian coal and mineral consultancy sector.
CMPDI operates seven regional institutes across India, serving a diverse client base that includes government entities and state-owned enterprises. The company’s integrated service portfolio covers both surface and underground mining projects.

Financial Performance

CMPDI has demonstrated robust financial growth:

Revenue from operations rose to ₹2,103 crore in FY25, up from ₹1,732 crore in FY24.
Profit after tax surged to ₹667 crore in FY25, compared to ₹503 crore in the previous year.
The company reported a net worth of ₹2,042 crore as of March 31, 2025, and remains debt-free.
CMPDI’s return on net worth (RoNW) stands at 32.7%, with EBITDA margins exceeding 30%.
Over 67% of CMPDI’s FY25 revenues came from Coal India and its subsidiaries, though this reliance has gradually decreased from previous years.

Sector Outlook and Rationale

The IPO aligns with the coal ministry’s broader plan to list Coal India subsidiaries, including CMPDI and Bharat Coking Coal Ltd (BCCL), to streamline operations and grant greater operational autonomy. The Indian mining consultancy sector is projected to grow significantly, with revenues expected to reach ₹4,007 crore by FY30, up from ₹2,570 crore in FY24.

Conclusion

Overall, this IPO will be an offer for sale issue, but CMPDI’s strong financials, market leadership, and strategic role in India’s coal sector are expected to attract significant investor interest as the company prepares for its public debut. Further details regarding the IPO’s price band, anchor investor allotments, and bidding timelines will be announced in the coming weeks.

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