Coal India Ltd announced that its fully owned subsidiary, Central Mine Planning and Design Institute Limited (CMPDIL), has submitted its Red Herring Prospectus (RHP) to the Securities and Exchange Board of India (SEBI), as well as to BSE and the NSE.
This submission has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to provide disclosure of significant information, said the firm in an exchange filing dated March 12.
The RHP pertains to CMPDIL’s planned initial public offering, which will consist solely of an offer for sale (OFS) of up to 107.1 million equity shares by Coal India Limited. Since this issue is set up as a complete OFS, CMPDIL will not receive any funds from the offering, and the entire transaction will be conducted by the parent company.
The anticipated IPO is part of Coal India’s larger strategy to realize value from its subsidiaries and increase investor engagement in its specialized sectors. CMPDIL mainly offers consultancy services in fields such as coal exploration, mine planning, mine design, environmental management, and mineral resource development.
Nonetheless, the public matter is still contingent upon obtaining the required regulatory approvals, current market conditions, and other pertinent factors.
Coal India in an exchange filing mentioned that this disclosure has been provided to promote transparency and the prompt communication of information to investors and market participants, in accordance with regulatory obligations.
This is the second subsidiary gearing up for a market listing after Bharat Coking Coal, which got listed on 19 January.
(more to come)