CMPDIL IPO Review: Central Mine Planning and Design Institute (CMPDI) is one of the largest coal and mineral consultancy companies in India. It was incorporated in 1975 and is a wholly-owned subsidiary of Coal India Limited (CIL). Coal India is a Maharatna PSU under the Ministry of Coal.

CMPDI is currently open for subscription. On the first day (Friday, March 20) of the three-day subscription, the CMPDIL IPO was subscribed only 7 per cent. The IPO received bids for 52,44,320 shares, as against 7,97,89,500 shares on offer, as per NSE data.

CMPDIL's Rs 1,842 crore IPO will close for subscription on March 24.

CMPDIL IPO Price Band

CMPDIL has fixed the price band at Rs 163-172 per share. At the upper end, the company is eyeing a valuation of around Rs 12,280 crore.

CMPDIL IPO is entirely an offer-for-sale (OFS) of 10.71 crore shares, worth Rs 1,842.12 crore. It has no fresh issue component.

CMPDIL Earnings

CMPDIL has delivered a robust performance with Revenue, EBITDA and PAT growing at robust 23 per cent, 48 per cent and 50 per cent, respectively, CAGR over FY23-25.

CMPDIL IPO Review: Subscribe or Avoid?

ICICI Securities said that going ahead, steady demand for coal-based power and increasing exploration opportunities in non-coal and critical minerals, provides long-term growth visibility.

Notably, at the upper end of the price band, CMPDI is valued at ~18x P/E on FY25 basis, which appears attractive considering its strong double-digit margins, healthy return ratios, net cash positive balance sheet, and robust growth prospects.

ICICI Securities has assigned a 'SUBSCRIBE' rating on Central Mine Planning and Design Institute.

CMPDIL offers consultancy and support services for the entire spectrum of coal and mineral exploration, as well as mine planning and design services.