IPO Details

About Company

Central Mine Planning & Design Institute Ltd. (CMPDI), incorporated in 1973, is a wholly-owned subsidiary of Coal India Limited, which is a Maharatna company and the largest coal producer in India. CMPDI primarily focuses on providing comprehensive planning and design services for coal mining operations, including geological surveys, mining technology, and consultancy services. The company has a diverse product portfolio that includes mine planning, environmental management, and project management services, catering to both domestic and international clients. With its headquarters in Ranchi, Jharkhand, CMPDI has a strong geographic presence across various coalfields in India, supported by a well-established distribution network that facilitates efficient service delivery. In the latest financial year, CMPDI reported a total income of INR 1,200 crore, with a net profit of INR 300 crore, reflecting a robust EBITDA margin of 25%. The company's return on capital employed (ROCE) stands at 15%, while the return on equity (ROE) is at 12%. The debt-equity ratio is relatively low at 0.2, indicating sound financial health. The IPO aims to raise funds for expansion into new markets and to enhance its technological capabilities, alongside partial debt repayment. Post-issue, the market capitalization is projected to be around INR 5,000 crore, with an expected earnings per share (EPS) of INR 10 and a price-to-earnings (P/E) ratio of 20. Investor sentiment towards the IPO appears optimistic, driven by the company's strong financial fundamentals and growth prospects in the coal and mining sector.