CMPDI is a “miniratna” subsidiary of Coal India Ltd. and has no fresh issue component as part of the IPO. The entire issue is an Offer For Sale (OFS), which means that the company will not receive any proceeds from the IPO.
Retail investors can bid for one lot of 80 shares at the upper end of the price band of ₹172 per share, which will entail a minimum investment of ₹13,760 per lot.
50% of the issue is reserved for institutional bidders, 15% for Non-institutional, while 35% is reserved for retail investors.
The company is a consulting partner to Coal India and its subsidiaries across various domains and also assists the Ministry of Coal in strategic decisions and initiatives relating to the sector.
CMPDI offers services that range from coal and mineral exploration, mine planning & design services, environmental services, laboratory services, coal beneficiations services and mine closure activities as well.
Anand Rathi Shares and Stock Brokers believes that the IPO is fully priced and therefore, recommends investors to subscribe to the issue for the long-term. Most other brokerages covering the IPO also have a similar recommendation.
Currently, the Grey Market Premium (GMP) for the CMPDI IPO in the unlisted market is at ₹4 per share, which means that the shares would most likely list either at or around the issue price. However, it must be noted that the these are speculative numbers and the actual listing number could be different from the GMP trends.
In an interaction with CNBC-TV18, the management of CMPDI said that 67% of the company’s topline comes from Coal India, and the rest from other PSUs and some from even private companies.
The company aspires to maintain a 35% topline concentration beyond Coal India, as the PSU is an anchor customer of the company. CMPDI is also diversifying into critical minerals and renewable energy, with the management stating that Coal India is looking for exploration opportunities in the overseas market, and they are going with them as well.
