Amid ongoing ups and downs in the stock market, a much-awaited IPO has finally opened for investors.
The initial public offering of Central Mine Planning and Design Institute (CMPDI), a subsidiary of Coal India, is now live from March 20, 2026.
Investors can apply for this IPO until March 24.
However, keep in mind that bidding won’t be possible on March 21 and 22 due to the weekend.
The company plans to raise ₹1,842 crore through this offering.
Share allotment is likely by March 25, and the stock is expected to be listed on exchanges on March 30.
Key Details You Should Know
This IPO is entirely an Offer for Sale (OFS). This means no new shares are being issued.
Instead, Coal India is selling part of its stake in CMPDI.
A total of 10.71 crore shares are up for sale, each with a face value of ₹2.
The price band for the IPO is set between ₹163 and ₹172 per share. Investors can place bids within this range.
How Much Do You Need to Invest?
To apply for this IPO, you must bid for at least one lot.
One lot consists of 80 shares. Based on the highest price (₹172), the minimum investment required is ₹13,760.
There are also separate categories for bigger investors:
Small Non-Institutional Investors (NIIs) need to apply for at least 15 lots
Large NIIs must apply for a minimum of 73 lots
This structure allows both small and large investors to participate.
GMP Trend: What It Indicates
The Grey Market Premium (GMP) gives an idea of how the stock might perform after listing.
As of March 20, CMPDI’s GMP was around 2.33%, suggesting a possible listing price of about ₹176.
Earlier in the week, the GMP was much higher at 13%, hinting at a stronger listing around ₹193.
However, it’s important to remember that GMP is unofficial and keeps changing based on market conditions.
Should You Consider This IPO?
CMPDI is a ‘Miniratna’ public sector company, which adds credibility.
However, since this is an Offer for Sale, the company itself won’t receive fresh funds.
If you’re planning to invest, consider market conditions, company fundamentals, and your risk appetite before making a decision.
This IPO could be an interesting opportunity, but like all market investments, it comes with its own risks.
