The ₹1,842 crore initial public offering (IPO) of Central Mine Planning and Design Institute (CMPDI) opened for subscription on March 20, but saw a slow response from investors on the first day. The issue was subscribed only about 4% by the end of Day 1, reflecting a cautious mood in the market.
CMPDI is a subsidiary of Coal India and provides consultancy and planning services for coal and mineral exploration projects. The IPO is entirely an offer for sale (OFS), which means the company will not receive any funds from it. Instead, Coal India is selling part of its stake and will receive the proceeds.
The price band for the IPO has been set between ₹163 and ₹172 per share. Investors can apply for the issue until March 24, and the company is expected to list on stock exchanges soon after.
Initial signals from the market suggest limited excitement. The grey market premium (GMP) indicates a possible listing gain of around 2%, pointing to moderate investor interest rather than strong demand.
Experts say the slow start is partly due to current market conditions. In recent months, several IPOs have not performed well after listing, making investors more careful about new investments. As a result, many are taking a wait-and-watch approach before committing funds.
However, CMPDI’s connection with Coal India and its role in India’s energy sector could support demand in the coming days. The company has a stable business model and has reported consistent financial performance over the years. Its services are important for planning and developing coal mining projects, which remain crucial for the country’s energy needs.
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