Coal India Limited Subsidiary CMPDIL Files DRHP for IPO
CMPDIL To Offload 10% Stake via Offer for Sale
Coal India Limited’s (CIL) wholly owned subsidiary, Central Mine Planning & Design Institute Limited (CMPDIL), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The issue comprises solely an offer-for-sale (OFS) of 71.4 million equity shares, translating to a 10% stake in the company being offloaded by CIL.
The proposed IPO will not result in any fresh capital infusion into CMPDIL, as no new shares are being issued. CMPDIL, India’s largest coal and mineral consultancy in terms of market share as of March 2025, provides end-to-end services in coal and mineral exploration, mine planning, and design.
According to the DRHP, the Indian mining consultancy sector is poised for substantial growth, with projected revenue increasing from ₹2,570.1 crore in FY24 to ₹4,007.1 crore by FY30.
CMPDIL has shown consistent financial improvement over the past three fiscal years. For FY25, the company reported a net profit of ₹666.91 crore, more than double its FY23 figure. Revenue growth has also been robust, rising by nearly 52% since FY23. Importantly, CMPDIL has been actively reducing its dependency on its parent and group entities. Revenue share from CIL and its subsidiaries has declined from 83% in FY23 to 67% in FY25.
The DRHP notes 11 legal proceedings involving CMPDIL, with potential liabilities amounting to ₹192.23 crore. The company currently has no borrowings, though it has mortgaged current assets as collateral for group-level credit facilities. This arrangement could pose financial obligations in case of default by other Coal India group companies.
IDBI Capital Markets & Securities and SBI Capital Markets are acting as the book running lead managers for the IPO, while KFin Technologies has been appointed as the registrar.
The coal ministry had earlier indicated that the timing of CMPDIL’s and Bharat Coking Coal’s listings would be market-dependent, and CMPDIL’s DRHP filing marks a major step forward in that direction.
