Coal India subsidiary CMPDI IPO Day 3: GMP at ₹1 on final day; check subscription status

CMPDI IPO: The issue was subscribed 25% as of Day 2, with cumulative bids for 2.02 crore shares against 7.97 crore shares on offer.

By Meghna Sen

The ₹1,842 crore initial public offering (IPO) of Central Mine Planning and Design Institute Ltd. (CMPDI) continued to witness lacklustre investor interest through Day 2 of the bidding process. The issue closes for subscription today.

The IPO was subscribed 25% as of Day 2, with cumulative bids for 2.02 crore shares against 7.97 crore shares on offer.

The retail investors' portion was subscribed 17%, while the quota for non-institutional investors (NIIs) saw 8% subscription. The qualified institutional buyers (QIBs) segment was booked 62% as of Day 2.

In the grey market, shares of Central Mine Planning are trading at a marginal premium of 0.58% to the issue price of ₹172 per share, implying a GMP of ₹1.

However, grey market trends are speculative and the actual listing price may differ.

CMPDI is a 'miniratna' subsidiary of Coal India Ltd., and the IPO is entirely an offer for sale (OFS), with no fresh issue component. As a result, the company will not receive any proceeds from the issue.

Retail investors can bid for one lot of 80 shares at the upper price band of ₹172, translating into a minimum investment of ₹13,760.

The company serves as a consulting partner to Coal India and its subsidiaries across multiple domains, and also supports the Ministry of Coal in strategic initiatives.

CMPDI offers a range of services including coal and mineral exploration, mine planning and design, environmental and laboratory services, coal beneficiation, and mine closure solutions.

In an interaction with CNBC-TV18, the company's management said that 67% of its revenue comes from Coal India, with the remainder contributed by other PSUs and some private sector clients.

CMPDI aims to increase the share of revenue beyond Coal India to around 35%, while continuing to retain the PSU as its anchor client.

The company is also diversifying into critical minerals and renewable energy. Management added that Coal India is exploring overseas opportunities, and CMPDI plans to participate alongside it.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.