CMPDI IPO GMP slips to 8% - Coal India arm to launch issue on March 20

Central Mine Planning and Designing Institute (CMPDI), a wholly owned subsidiary of Coal India, is all set to launch its IPO for bidding on March 20. The issue worth Rs 1,842 crore is in limelight as the company’s promoter group, i.e. Coal India, will offload nearly 10% of its equity.

A total of 10.71 crore equity shares of face value Rs 2 will be offered from the company.

The price band for the shares has been fixed at Rs 163 – 172.

CMPDI IPO: GMP off highs but up 8%

In the grey market, the company’s shares are currently trading at a premium of more than 8%, suggesting a listing price of Rs 186 at the upper end of the price band.

As per market trackers, yesterday the shares commanded a double-digit premium of nearly 13%, indicating a listing price of around Rs 194.

However, readers must note that the grey market premium is an unofficial metric to determine the listing price and may change based on market mood and conditions.

CMPDI IPO: Offer size and lead managers

The issue worth Rs 1,842.12 crore is entirely an offer for sale, with the company’s promoter group, Coal India, shedding 10.71 crore equity shares of face value Rs 2 each.

The issue is being managed by IDBI Capital Markets and SBI Capital Markets, while KFin Technologies is the registrar to the issue.

CMPDI IPO: Employee and shareholder reservation

As per the company’s RHP, 53.55 lakh equity shares of face value Rs 2 each have been reserved for the employees of the company, while 1.07 crore equity shares will be available for subscription to eligible shareholders.

CMPDI IPO: Key dates

CMPDI’s IPO will open for anchor bidding on March 18, while the issue will open for public subscription on Friday, March 20, and close on Tuesday, March 24. The company is expected to hit the bourses on March 30.

Central Mine Planning & Design Institute IPO: Lot size

Retail applicants will need to bid for a minimum of one lot comprising 80 shares, aggregating to Rs 13,760. For small NII the lot size stands at 15 lots of 1,200 shares aggregating to Rs 2 lakhs, and for a big NII it is 73 lots of 5,840 shares, totalling to Rs 10 lakh