CMPDI Files DRHP for IPO
By Ankur Chandra | Updated at: May 31, 2025 10:41 PM IST
Mumbai, May 26, 2025: Central Mine Planning & Design Institute Limited (CMPDI), a wholly owned subsidiary of Coal India Limited (CIL), has taken a significant stride towards its initial public offering (IPO) by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed public issue will be conducted entirely through an Offer for Sale (OFS) of up to 71.4 million equity shares, each with a face value of ₹2, offered by Coal India Limited.
IPO Highlights
| Details | Figures |
|---|---|
| Offer Type | 100% Offer for Sale |
| No. of Equity Shares | Up to 71,400,000 |
| Face Value per Share | ₹2 |
| Promoter Selling Shareholder | Coal India Limited |
| WACA (Weighted Avg. Cost of Acquisition) | ₹0.3 per share |
| Listing Exchanges | BSE and NSE |
| Book Running Lead Managers | IDBI Capital Markets, SBI Capital Markets |
| Registrar | KFin Technologies Ltd. |
It is important to note that CMPDI is not raising fresh capital through this offering; instead, the entire sale proceeds will be credited to the promoter shareholder, Coal India Limited. The IPO will include a reservation for eligible employees and existing shareholders, with the remaining shares offered to the public as the Net Offer.
About CMPDI
Since its establishment in 1975, CMPDI has emerged as India’s largest coal and mineral consultancy. It is renowned for delivering comprehensive solutions spanning geological exploration, mine planning and design, environmental engineering, geomatics, remote sensing, infrastructure development, and research and development services. The company has been an indispensable partner to Coal India and its subsidiaries, providing expert consultation that supports the nation’s coal sector.
Financial Performance Highlights (Standalone)
(₹ in million)
| Financial Year | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations | 21,027.6 | 17,326.9 | 13,860.9 |
| Profit After Tax | 6,669.1 | 5,032.3 | 2,966.6 |
| EPS (Basic/Diluted) | ₹9.3 | ₹7.0 | ₹4.2 |
| Net Worth | 20,418.5 | 15,916.1 | 12,176.5 |
| Total Borrowings | Nil | Nil | Nil |
| Net Asset Value per Share | ₹28.6 | ₹22.3 | ₹17.1 |
CMPDI has consistently improved profitability, with PAT up 32.5% YoY in FY25 and zero debt on the balance sheet.
CMPDI has demonstrated consistent growth, achieving a robust 32.5% increase in profit after tax in FY25 compared to the previous year, all while maintaining a debt-free balance sheet.
Key Risks and Dependencies
The DRHP candidly outlines certain strategic risks, including:
- Revenue Concentration: Over 67% of CMPDI’s FY25 revenue was generated from contracts with Coal India and its subsidiaries.
- Dependence on Government Clients: Approximately 97.8% of the company’s revenue comes from government entities.
- Vendor Dependence: CMPDI relies heavily on a limited number of exploration and field service vendors.
- Employee Cost Sensitivity: Staff expenses account for more than 47% of total costs.
- Technology Risks: Sustained investment in advanced exploration and laboratory technology is crucial to avoid obsolescence.
Litigation Overview (As of DRHP Filing)
- Company Tax Proceedings: ₹1,922.3 million
- Corporate Promoter Ongoing Matters: ₹7,613.3 million
There have been no reported disciplinary actions against CMPDI or its directors.
Dividend Track Record
CMPDI has consistently rewarded its promoter shareholder, CIL, with dividends. In FY25, the company paid a total dividend of ₹2,009.7 million, including an interim dividend of ₹1,500 million and a final dividend of ₹509.7 million for FY24.
Promoter Holding Pre- and Post-Offer
| Name | Pre-Offer | Post-Offer |
|---|---|---|
| Coal India Limited | 100.0% | [To be updated] |
| President of India (MoC) | Nil | [To be updated] |
Post-IPO shareholding will depend on allocation and price band finalisation.
The post-IPO shareholding pattern will be finalised once the offer price and allocation are determined.
Final Thoughts
CMPDI’s IPO offers a unique chance for investors to engage with the backbone of India’s coal and mineral consultancy sector. With a strong financial foundation, excellent profitability, and deep-rooted relationships within the public sector, CMPDI is well-positioned to capitalise on India’s ongoing reliance on coal while also exploring diversification into other minerals and geoscientific fields.
Further details regarding the price band, anchor investor allotments, and bidding timelines are expected to be announced soon.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.
REF: https://nsearchives.nseindia.com/corporate/Registration_26052025232753_cmpdiDRHP.pdf
