Central Mine Planning IPO Day 1 Highlights: Central Mine Planning IPO booked 7% — GMP tepid; should you apply?

Central Mine Planning & Design Institute Limited IPO was booked just 7% on the first day of bidding process. The NII segment received 5% bids, retail portion 10%, employee segment 6% and the shareholder quota 11%. The QIB part did not see any bids.

With around 5 decades of experience, CMPDI has executed over 700 geological reports relating to integrated coal exploration projects in the last 10 years. Further, the company has successfully executed several key projects for various domestic and international clients, including the reformation and optimization of operations for the turnaround of the Benga coal project in Mozambique and the detailed project report for the Zambeze coking coal project.

CMPDI is one of the largest coal & mineral consultancy companies in India (61% market share as of FY25). The company is a wholly owned subsidiary and preferred consultant of Coal India Ltd. Going ahead, the company aims to diversify its portfolio by expanding into critical minerals such as lithium, nickel, cobalt, copper, and other non‑coal resources.

Historically, the company has recorded Revenue/EBITDA/PAT CAGR of 23.2%/48.2%/49.9%, respectively over the FY23-FY25 period. At the upper price band of ₹172, the issue is valued at FY25 P/E and EV/EBITDAmultiples of 18.4x/13.3x, respectively based on post-issue capital.

— Views by SBI Securities

Central Mine Planning & Design Institute Limited (CMPDIL), a subsidiary of Coal India, is a government-backed mining consultancy with a strong ~61% market share. The company operates across the entire mining lifecycle and benefits from high entry barriers, strong parentage, and long-standing government relationships. It has delivered robust financial performance, with ~23% revenue CAGR, healthy EBITDA margins of 40%+, and zero debt, reflecting strong operational efficiency.

With solid return ratios (RoE ~36.7%) and stable cash flows, CMPDIL stands well-positioned within the PSU ecosystem. While it remains largely aligned with the coal sector, ongoing diversification efforts add to its long-term potential. Overall, the IPO appears fairly priced and offers a stable opportunity for investors seeking consistent and relatively predictable returns.

— Gaurav Garg, Research Analyst at Lemonn Markets Desk

As of 9MFY26, the company has reported contingent liabilities of ₹210.8 cr (~32% of FY25 PAT). If a significant portion of these liabilities materialize, it could have an adverse effect on the company’s business and financial health.

During FY25/9MFY26, the company derived 95.0%/93.8% of its revenue from its Top 10 customers. Any failure to expand the customer base or retain the Top 10 customers may have an adverse impact on the company’s performance. Additionally, during FY25/9MFY26, the company generated 66.0%/68.3% of its total revenue from Coal India Ltd and its subsidiaries. Any adverse developments in the coal market could negatively impact the demand for coal and, consequently, the financial health of Coal India and its subsidiaries, leading to a direct impact on the CMPDI’s financial performance.

The business operates an efficient, consultancy-driven model that consistently generates healthy margins and positive cash flows without requiring heavy machinery investment. However, as a wholly-owned subsidiary of a PSU, the company has historically used its cash reserves for high dividend payouts and buybacks to the promoter. Future growth depends on whether listing will shift this focus from dividend distribution toward aggressive reinvestment in non-coal mineral sectors.

Central Mine Planning IPO was subscribed 5% so far, showed BSE data. The retail quota was booked 7% and NII segment 3%.

In the medium term, the company is well-positioned to benefit from India’s mandate to enhance energy security through increased domestic coal production and the auctioning of commercial mineral blocks. Its transition toward a "one-stop-shop" consultancy for both coal and non-coal minerals, combined with a capital-light business model, provides a stable foundation for steady cash flow generation.

However, this growth potential is balanced by a heavy structural dependence on its parent entity and the overarching long-term risks associated with the global energy transition. At the upper band of INR 172, the issue is valued at a P/E ratio of 21.65x, based on annualized PAT of FY26 EPS of INR 7.94. We are recommending a “Neutral” rating for this issue.

The company possesses extensive expertise in executing coal exploration and related mining consultancy projects, supported by nearly five decades of operational experience. Over the past ten years, the company has executed more than 700 geological reports relating to integrated coal exploration projects, demonstrating its strong technical capabilities in geological assessment and resource evaluation. In addition, it has prepared over 300 hydrogeological reports since April 1, 2021, specifically for the mining sector.

Central Mine Planning & Design Institute (CMPDI) is a multidisciplinary organization offering a comprehensive suite of consulting and technical services across the entire value chain of coal and mineral exploration, mine planning, and design.

As a key consulting partner to Coal India Limited and the Ministry of Coal, CMPDI has established a strong reputation supported by its diverse client base and long-standing industry presence. The organization possesses extensive expertise in executing large-scale exploration projects, backed by advanced infrastructure, cutting-edge technology, and robust technical capabilities. Its operations are further strengthened by the strong parentage of Coal India Limited, enabling CMPDI to deliver high-quality, reliable, and efficient solutions while maintaining leadership in the coal and mining consultancy space.

At the upper price band, the company is valued at a P/E of 21.5x based on its FY26 annualized earnings, with a market capitalization of ₹1,22,808 million post-issue of equity shares.

We believe that the IPO is fairly priced and recommend a “Subscribe – Long Term” rating.

— Anand Rathi

The company holds a commanding 61% market share in the Indian coal and mineral consultancy sector and serves as the primary technical partner for Coal India Limited (CIL). While this provides a steady and predictable revenue stream, over 67% of its revenue is derived from this single client.

The stability of the order book is therefore inherently tied to CIL’s capital expenditure and procurement policies rather than broad market dynamics.

At the upper price band of ₹172, Central Mine Planning & Design Institute Limited is valued at a post-issue P/E multiple of 18.49x and a P/B multiple of 6.01x, which indicates a reasonable valuation when compared with its listed peers.

Central Mine Planning IPO was subscribed 2% so far on the first day of the bidding process. Here is how different quotas were booked:

QIB:

NII: 1%

Retail: 4%

Employee: 2%

Shareholder: 4%

Overall: 2%

Four reasons why Equivision has an ‘apply’ rating on Central Mine Planning IPO:

1. The company has demonstrated strong financial performance, with revenue CAGR of 23.2% and Operating EBITDA CAGR of 48.2% during FY23-FY25. Sales further grew by 9.3% YoY to 14,896.5 million in 9M FY26, driven by higher service revenues, reflecting improving operational efficiency and scalability.
2. Its long-standing association with Coal India Limited and the Ministry of Coal ensures revenue stability, enhances credibility, and provides access to large scale project opportunities, with 67.1% of FY25 revenue derived from these entities.
3. The company is progressively reducing client concentration risk, supported by a diversified client base across government agencies, PSUs, and private players. Revenue from clients other than Coal India Limited and its subsidiaries grew at a robust CAGR of 69.82% during FY23-FY25, while the client base expanded from 38 in FY23 to 76 as of 9M FY26.
4. Favorable industry outlook supports growth visibility, as coal is expected to remain a key energy source in India until at least FY2035. The company's capabilities in mining consultancy and its infrastructure for exploration of critical minerals, including rare earth elements, position it well to benefit from sustained sector demand.

• Price Band: ₹163 – ₹172
• Bid/Offer Opening Date: March 20, 2026
• Bid/Offer Closing Date: March 24, 2026
• Anchor Investor Bid/Offer Period: March 18, 2026
• Bid Lot: Minimum bid lot is 80 equity shares of face value ₹2 each, and in multiples of 80 equity shares thereafter

Central Mine Planning IPO is entirely an offer for sale by Coal India. This means that no proceeds from the offer will be received by CMPDI. The company will enjoy the benefits of listing on the exchanges.

The IPO allocation is structured with 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. CMPDIL is scheduled to list on the stock exchange on March 30.

Established in 1975, CMPDIL operates as a wholly owned subsidiary of Coal India and provides consultancy and support services across coal and mineral exploration, mine planning, and design. Its offerings also extend to infrastructure engineering, environmental management, geomatics, specialized technology services, and management systems.

IPO priced at ~18.4x P/E, supported by strong earnings growth and high EBITDA margins (~42%). Consistent profit growth with a debt-free balance sheet adds comfort for investors.

No direct listed peers, making comparison difficult but highlighting niche dominance. 100% OFS (no fresh funds) and heavy dependence on Coal India (>90% revenue) may limit upside.

As a short-to-medium-term tactical play, CMPDI is a "Subscribe" due to its discounted valuation and debt-free balance sheet. However, investors must weigh the immediate risks of its 100% Offer for Sale (meaning no fresh capital for growth) and its heavy reliance on Coal India for over 90% of its revenue.

— Swastika Investmart