CMPDI IPO Underwhelms: Day 2 Subscription At 10%, No Movement In GMP; What’s Behind The Weak Demand?
Business
Coal India’s subsidiary CMPDI IPO is struggling to gain traction even on the second day of bidding. The IPO so far has been subscribed only 10% overall and 15% in the retail category. This is disappointing, as its sister company BCCL, which is also a Coal India subsidiary, was selling like hot cakes during its time. However, CMPDI IPO has failed to match that level of demand.
Even in the grey market, trading of unlisted shares remains quite muted, and CMPDI shares are available at the issue price. They are currently trading at zero premium as of noon today, according to market data.
CMPDI IPO Subscription On Day 2
As of Day 2, the Central Mine Planning & Design Institute (CMPDI) IPO has been subscribed 0.10 times overall. The retail portion has seen relatively better participation at around 0.15 times, while the non-institutional investor (NII) category is subscribed 0.07 times. However, the QIB segment has seen no bids so far.
CMPDI IPO Details
The Central Mine Planning IPO is worth Rs 1,842.12 crore and is entirely an offer for sale (OFS) of 10.71 crore shares. The price band for the IPO is fixed between Rs 163 and Rs 172 per share, with a face value of Rs 2 per share.
Retail investors can apply with a minimum lot size of 80 shares, requiring an investment of Rs 13,760 at the upper price band.
The IPO opened for subscription on March 20, 2026, and will close on March 24, 2026. The allotment is expected to be finalised on March 25, 2026, with a tentative listing date set for March 30, 2026 on both NSE and BSE. The issue also includes a reservation of up to 53,55,000 shares for employees at a discount of Rs 8 per share.
Why CMPDI IPO Is Seeing Weak Demand?
Several factors appear to be weighing on investor sentiment. The absence of strong participation from institutional investors, especially QIBs, has spoiled the overall momentum. Additionally, the flat GMP means a lack of listing gains, which typically attracts short-term investors.
Market conditions are also not very promising, as both benchmarks crashed and are trading at yearly lows. Sensex Today fell 2.61% and was trading at 72,586. Meanwhile, Nifty 50 nosedived 638 points to trade at 22,475 at the time of writing.
Should You Subscribe or Skip?
Brokerage views on CMPDI IPO are mixed. Out of 10 brokerage firms that reviewed the issue, around five have given an ‘apply’ rating, while others remain cautious.
According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, “CMPDIL is a government-backed mining consultancy with a dominant market share of around 61% and strong parentage under Coal India. The company operates across the entire mining lifecycle and benefits from high entry barriers and long-standing government relationships.”
He highlighted that CMPDI has delivered robust financial performance, with a revenue CAGR of around 23%, EBITDA margins above 40%, and a debt-free balance sheet.
“With strong return ratios (RoE of around 36.7%) and stable cash flows, CMPDIL is well-positioned within the PSU ecosystem. While it remains closely tied to the coal sector, its diversification efforts provide long-term growth potential. The IPO appears fairly priced and offers a stable opportunity for investors seeking consistent returns,” he added.
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