CMPDIL files draft papers for IPO as Coal India plans to offload 10% stake

CMPDIL, India’s largest coal and mineral consultancy, provides services related to mine planning and exploration. 

Coal India’s subsidiary Central Mine Planning and Design Institute (CMPDIL) has filed a draft papers with markets regulator SEBI for its initial public offering as the state-run coal behemoth is planning to offload as much as 10 per cent stake in the engineering arm.

The proposed IPO will be an offer for sale with no fresh issue. In a stock exchange filing on Tuesday, Coal India said it was hereby informed that the draft red herring prospectus of CMPDIL, a wholly-owned subsidiary of it, was filed with SEBI.

The DRHP pertains to the proposed IPO of CMPDIL comprising an offer for sale of up to 7.14 crore shares by Coal India, which remains subject to receipt of applicable approvals, market conditions, and other relevant considerations.

Currently, Coal India has eight subsidiaries, and CMPDIL is the only non-coal-producing subsidiary. The engineering arm of CIL is the first of its subsidiaries which has filed draft papers for IPO.

The objects of the offer are to achieve the benefits of listing on the stock exchanges, and carry out the OFS by the promoter selling shareholder.

Notably, CMPDIL was set up for preparing perspective plans, rendering consultancy services, and undertaking exploration and drilling work to establish coal reserves in the country and collect detailed data for the preparation of projects for actual mining.

Last week, Coal India, in a stock exchange clarification, said “Activities related to listing of CMPDIL and BCCL, wholly owned subsidiaries of CIL, are in progress. Through tendering process, BRLMs have been appointed. DRHP is under preparation and further update will be provided once filing is made in accordance with applicable law.”

CMPDIL is now very crucial for the country’s energy security as CIL has been looking to acquire lithium blocks in Australia and Argentina, among other countries.

“By leveraging its capabilities and investing in research and development, CMPDIL can help augment India’s lithium resources, optimise mining and beneficiation costs, and contribute to the country’s energy security and sustainability goals,” the company stated in the DRHP.

“By adapting its knowledge and skills to the lithium industry, CMPDIL can develop innovative solutions to optimise mining and beneficiation costs and establish itself as a leading player in the Indian and global lithium markets,” it added.

Published on May 27, 2025