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The initial public offering (IPO) of Coal India subsidiary — Central Mine Planning — is poised to hit the Indian primary market this week, marking the divestment in just three months by the Maharatna company.
The IPO of Bharat Coking Coal (BCCL), another Coal India subsidiary, opened earlier this year, garnering bumper demand of 143.85 times from investors and nearly doubling investors' money in a short span despite weak market sentiment.
Now, it remains to be seen if the Central Mine Planning IPO can repeat the same performance. Investor interest remains already heightened as signalled by the grey market trends, marking a sharp departure from the prevailing IPO market trend.
IPO market sentiment remains subdued
The IPO market saw some activity in the early part of 2026, but sentiment has moderated amid weak secondary market performance and geopolitical uncertainty. PhonePe has shelved its IPO plan as the Middle East conflict has clouded the market outlook.
In fact, timelines for some of the most anticipated listings, such as NSE and Reliance Jio Platforms, have also remained uncertain, highlighting that companies are increasingly prioritising stability in market conditions before launching public issues, said Sneha Poddar, VP -Research, Wealth Management, Motilal Oswal Financial Services.
According to Trendlyne data, among the 11 IPOs that have listed in 2026, seven are trading at a discount.
With several recent IPOs delivering muted or negative listing gains, investor participation—particularly from retail investors—has become more cautious, leading to more selective demand in the primary market, said Poddar.
"Additionally, geopolitical tensions in West Asia are weighing on the economy and putting pressure on corporate margins. These factors are already impacting earnings visibility and valuations, which in turn tends to keep primary market sentiment subdued until broader macro stability improves."
Apart from the market turbulence, Mahesh Ojha, Vice President of research and business development at Kantilal Chhaganlal Securities, said that very few of the current IPOs leave anything on the table for investors. "When IPO valuations are high, investors tend to shirk the offers in search of better opportunities."
In this backdrop, the Central Mine Planning IPO is turning out to be an anomaly.
The company announced its price band on Monday at ₹163-172 per share, following which the grey market premium (GMP) spiked. According to websites tracking the unofficial market, Central Mine Planning IPO GMP today is ₹22, suggesting a listing gain of 12.8% if the trend holds.
Can Central Mine Planning IPO revive primary market?
Despite its strong appeal to investors, the interest might be more issue-specific than market-agnostic, according to experts.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, said that to revive a weak or dormant IPO market, you need a massive or “earth-shattering” IPO that can significantly shift investor sentiment, but the CMPDI IPO is not a large enough issue.
However, he added that while it may not be a blockbuster IPO that doubles or delivers 50% gains, it can still perform well given current market conditions. "If it delivers returns of 10–25%, that would be considered strong in the present scenario."
Poddar added that the company may see strong traction given its strong parentage under Coal India and its strategic role in mining consultancy and exploration. Additionally, she said that the Union Budget 2026-27 announced measures to strengthen India’s critical minerals ecosystem, including the creation of dedicated rare-earth corridors in mineral-rich states to boost domestic exploration and processing, which could also support investor interest in the issue.
"However, any positive response is more likely to remain issue-specific rather than indicative of a broader revival in IPO sentiment, as investors are currently prioritising companies with strong fundamentals and credible sponsors," she opined further.
Central Mine Planning IPO, worth ₹1842 crore, is entirely an offer for sale by Coal India. The company provides consultancy and support services for coal and mineral exploration. It has almost five decades of experience and has published over 320 project reports in the last decade.
The company assists the Ministry of Coal in strategic decisions and initiatives relating to the coal sector at the national level, for instance, through maintaining inventories of coal deposits, coal mining potentials and operations. The company reported a profit of ₹425 crore for nine months ended December 2025, up roughly 9% from the year-ago period.
Kejriwal said, "Central Mine Planning IPO is from a company that is virtually a monopoly in its segment. It has the parentage of Coal India, so it comes with PSU lineage, which has its own pluses and minuses—like assured dividends and a defined payout ratio." The company's focus is also expanding into mine closure, providing it with "a significant opportunity with over a thousand mines requiring scientific shutdown and land restoration."
Central Mine Planning IPO will close for bidding on March 24, with shares slated to list on both BSE and NSE.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
