Coal India to take first unit public with consultancy firm IPO
Coal India Ltd. will sell as much as 10% of its holding in mining consultancy unit Central Mine Planning & Design Institute Ltd. (CMPDI) through an initial public offering.
The Ranchi-based unit of the world’s biggest coal miner filed draft prospectus for sale of as many as 71.4 million shares through the offering. CMPDI will be the first Coal India unit to go public as part of the state-owned company’s plan to separately list shares of its units on stock exchanges with an aim enhance competition and boost output.
Earlier this month Coal India said it has hired banks to manage the IPOs of units Bharat Coking Coal Ltd. and Central Mine Planning & Design Institute, and started “activities” including preparations of prospectuses. Updates on Bharat Coking’s IPO are still awaited.
Coal India will retain 90% holding in CMPDI, which provides consultancy and support services for mineral exploration, including mine planning and design. The company is not selling any new shares through the IPO.
The parent company and its other units accounted for more than two-third of CMPDI’s revenue in the year ended March, according to the prospectus. The company reported net income of 6.67 billion rupees in 2024-25 on sales of about 21 billion rupees.
IDBI Capital Markets and SBI Capital Markets will manage the share sale.
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