The initial public offering of Central Mine Planning and Design Institute witnessed a slow response from investors, with the issue subscribed 10 per cent as of 11.57 am on March 23, the second day of bidding.
Demand remained subdued across categories, with the qualified institutional buyers’ segment seeing no bids, while the non-institutional investors’ portion was subscribed 0.07 times. The retail investors’ quota was booked 0.14 times, the employee segment 0.08 times, and the shareholders’ reservation portion 0.16 times.
On day one, the IPO fetched
The tepid subscription comes despite the company raising ₹470 crore from anchor investors ahead of the issue opening, providing some confidence to the market. The ₹1,842-crore public issue is set to close on March 24.
Central Mine Planning and Design Institute, a wholly owned subsidiary of Coal India, incorporated in 1975, provides consultancy and support services across coal and mineral exploration, mine planning and design, infrastructure engineering, environmental management and geomatics. The company primarily caters to the coal sector along with other mineral industries.
The IPO price band has been fixed at ₹163–172 per share, valuing the company at around ₹12,280 crore at the upper end. The issue is entirely an offer-for-sale of 10.71 crore shares by Coal India, with no fresh issue component, meaning the proceeds will go to the parent company rather than being infused into the business.
Market analysts said the relatively weak subscription trend reflects cautious investor sentiment towards public sector offerings and limited listing premium expectations amid volatile broader market conditions. However, they noted that strong institutional participation closer to the closing day could improve overall demand.
in mining consultancy, long-standing relationship with Coal India and steady revenue visibility offer stability, but the absence of fresh capital infusion and moderate growth outlook may cap aggressive investor interest.
The public issue is being managed by IDBI Capital Markets & Securities Limited and SBI Capital Markets Limited.