Coal India’s Arm CMPDI Files DRHP for IPO; 10% Stake to Be Offloaded via OFS

Coal India’s subsidiary Central Mine Planning & Design Institute (CMPDI) has filed draft papers with the Securities and Exchange Board of India for an initial public offering, comprising only offer for sale of 71.40mn shares. The company provides consultancy and support services for the entire spectrum of coal and mineral exploration and mine planning and design services.

The Indian mining consultancy sector is expected to witness significant growth, with revenues expected to reach Rs 40,07.1 crore by FY30 from Rs 25,70.1 crore in FY24, CMPDI said in the draft papers.

As of March 2025, it was the largest coal and mineral consultancy in India in terms of market share, the company said in its draft papers. Earlier this month, several media reports suggested that the process of listing the two subsidiaries—Bharat Coking Coal and Central Mine Planning and Design Institute—has begun. The coal ministry had earlier said that the timing for listing of both firms will depend on market conditions.

Both revenue and net profit of CMPDI have steadily increased over the last three fiscals. The company’s net for FY25 increased more than two times over the figure recorded for FY23. Its profit for the year ended March 2025 was Rs 666.91 crore. CMPDI’s revenue has also showed a robust performance over the said period, rising nearly 52% over FY23.

More than 67% of the company’s revenues were derived from Coal India and its subsidiaries in FY25. CMPDI has reduced its reliance for revenue on the parent and group entities over the previous three fiscals. The share of Coal India and its subsidiaries in CMPDI’s total revenue in FY23 and FY24 was 83% and 80%, respectively. There are total eleven proceedings pending against the company, amounting to Rs 192.23 crore.

The company will not receive any proceeds from the issue as the IPO only consists of offer-for-sale. Coal India will offload 10% of its stake in the IPO via OFS. As of FY25, the company did not have any borrowings on its books. “Although the Company has not availed any amount from this facility during the year, its current assets have been mortgaged as collateral security for the facility. Consequently, a financial obligation may devolve on the Company in the event of default by other group entities,” the company said in the draft papers.

IDBI Capital Markets & Securities and SBI Capital Markets are the book running lead managers of the issue, while KFin Technologies in the registrar.