Central Mine Planning & Design Institute – IPO Note – Robust growth, high margins, but dependency risk to watch
Published on 19 Mar 2026
Central Mine Planning & Design Institute Ltd (CMPDI), a 100% subsidiary of Coal India is coming out with an IPO. Company is a leading mining consultancy firm providing end-to-end services across coal and mineral exploration. IPO is priced fairly: The IPO offering size is INR18.4bn and seeking market cap of INR123bn at upper end of the price band of INR163–172 per share. As an OFS, proceeds will go to the promoter (Coal India Ltd) and its stake will reduce to 85% post-IPO. IPO will open on 20 Mar’26, and close on 24 Mar’26. In FY25, CMPDI made dividend payout of 30% and at upper band of IPO price, it had dividend yield of 2%. Considering 10% revenue CAGR over FY26-28% and 40% EBITDA, IPO is priced at PER of 15x FY28E EPS and is at discount to RITES at 18x FY28E EPS. But the key risk is 95% of revenue coming from related party transactions, largely nomination based. In 9MFY26, 66% of revenue came from Coal India, 28% from the Ministry of Coal and 1-2% from other government departments. This warrants a valuation discount to peers.
