Coal India Limited (CIL), the largest coal-producing state company in India, is set to list Central Mine Planning & Design Institute Limited (CMPDIL) and Bharat Coking Coal Limited (BCCL) on the stock exchanges. Both entities have submitted their DRHPs to the Securities and Exchange Board of India (SEBI), showing their commitment to conducting initial public offerings (IPOs).

Let’s focus on the main details, market consequences, and how this impacts Indian investors and the stock market.

🔍 CMPDIL IPO: Coal India’s Mining Consultancy Arm Heads for the Market

The Center of Mathematical Planning and Development for Industry and Labor, or CMPDIL, is an important research organization in mathematical modeling.

Coal India Limited is the sole owner of Central Mine Planning & Design Institute Limited (CMPDIL). It acts as India’s leading coal and mineral consulting company, handling all steps of mine planning, exploration, design and consultancy for projects.

CMPDIL has built a noticeable position in the Indian mining field. According to the draft red herring prospectus, CMPDIL led in the field of coal and mineral consultancy as at March 2025.

💼 CMPDIL IPO Details

• IPO Type: 100% Offer for Sale (OFS)
• Equity Shares Offered: 71.4 million
• Stake Dilution: 10% by Coal India
• Fresh Issue: None
• IPO Registrar: KFin Technologies
• BRLMs (Lead Managers): IDBI Capital Markets & Securities and SBI Capital Markets

This CMPDIL IPO will not raise any fresh capital since it's entirely an OFS. Proceeds from the IPO will go directly to Coal India, the selling shareholder.

📈 Financial Highlights

CMPDIL has demonstrated strong financial performance in recent years:

• FY25 Net Profit: ₹666.91 crore (more than double from FY23)
• Revenue Growth Since FY23: 52% increase
• Reduced Dependency on Parent CIL:
  • FY23: 83% revenue from CIL group
  • FY25: 67% revenue from CIL group

CMPDIL is actively diversifying its revenue streams beyond Coal India, which is seen as a positive sign for investors.

⚖️ Legal & Financial Considerations

• Legal Cases: 11 ongoing proceedings with potential liability of ₹192.23 crore
• Borrowings: None currently, but current assets are mortgaged for group-level obligations

Investors should take note of CMPDIL’s collateral obligations tied to Coal India’s group-level debt facilities, which could pose risks in case of default by other entities.

🔍 Bharat Coking Coal (BCCL) IPO: Coal for India’s Steel Backbone

📌 About BCCL

Bharat Coking Coal Limited (BCCL) is another subsidiary of Coal India Limited, with a strategic role in supplying high-grade coking coal — a key raw material in steel production. The company plays a crucial role in fuelling the steel sector in India.

💼 BCCL IPO Details

• IPO Type: 100% Offer for Sale (OFS)
• Equity Shares Offered: Up to 46.57 crore shares
• Fresh Issue: None
• IPO Status: DRHP filed with SEBI, BSE, and NSE

Just like CMPDIL, the BCCL IPO will not involve any new shares. Instead, Coal India will offload part of its holding, providing a chance for public investors to participate in this PSU’s growth.

📊 Sector Outlook: Indian Mining & Coal Consultancy Market

According to CMPDIL’s DRHP:

• The mining consultancy industry in India is expected to grow from ₹2,570.1 crore in FY24 to ₹4,007.1 crore by FY30.
• Increasing demand for coal exploration, sustainable mining, and strategic mine design is likely to fuel this growth.
• Government initiatives to boost domestic coal production and reduce import dependency add further momentum.

🔐 Shareholder Quota in CMPDIL & BCCL IPOs: Are Coal India Shareholders Eligible?

As the IPOs of CMPDIL and Bharat Coking Coal Limited (BCCL) move closer to launch, one major question on the minds of retail investors is:

👉 “Will Coal India shareholders get the benefit of a shareholder quota in these IPOs?”

Let’s break it down in simple terms.

🏢 Parent Company: Coal India Limited

Both CMPDIL and BCCL are 100% owned subsidiaries of Coal India Limited (CIL), a listed public sector undertaking (PSU). Since Coal India is the direct promoter of both companies, investors holding shares of Coal India Limited may be eligible under the Shareholder Reservation Quota, subject to DRHP confirmation and SEBI’s final nod.

🔍 What Is the Shareholder Quota in an IPO?

The Shareholder Quota is a reserved portion in certain IPOs where the parent company is listed on the stock exchange. Investors who hold at least 1 share of the parent company on or before the record date are eligible to apply under this special category.

✅ Benefits of Applying in Shareholder Quota:

• Separate allocation pool
• Potentially better allotment chances
• Can apply under both Retail and Shareholder categories (within ₹2 lakh combined limit)

📌 Will CMPDIL & BCCL IPOs Have Shareholder Quota?

As of the current DRHP filings, neither CMPDIL nor BCCL has explicitly confirmed the inclusion of a shareholder reservation in the IPO structure.

However, here’s what we know:

• ✅ Coal India is the promoter of both CMPDIL and BCCL
• 📝 In past PSU IPOs like IRFC, HUDCO, HAL, etc., shareholder quota was provided when the parent company was listed
• 🔍 Final confirmation will be available in the Red Herring Prospectus (RHP) and SEBI approval

📢 Keep an eye out for the record date announcement!

📅 If Shareholder Quota is Confirmed, What Should You Do?

If you're planning to apply through the Shareholder Category:

1. Buy at least 1 share of Coal India Ltd. in your Demat account before the record date (T+2 cycle applies).
2. Hold the share until the record date to be eligible.
3. While applying, select “Shareholder Category” in your ASBA form or broker IPO portal.

⛔ Remember:

• If applying in both Shareholder & Retail categories, the combined amount should not exceed ₹2,00,000
• Applications exceeding the limit will be considered invalid multiple bids

💡 Why These IPOs Matter

These listings align with the government’s larger PSU disinvestment strategy and aim to unlock the value of public sector assets while increasing transparency and efficiency in their operations.

✅ Key Benefits for Investors:

• Exposure to monopoly segments (like coking coal and mining consultancy)
• Opportunity to invest in profit-making government entities

Backed by a strong parent company — Coal India

📅 IPO Timeline & What’s Next?

As of now, both CMPDIL and BCCL have only filed the DRHP. Actual IPO dates will depend on SEBI’s approvals, market conditions, and other regulatory clearances.

Stay tuned to IPOji.com for the CMPDIL IPO date, BCCL IPO date, price bands, GMP (Grey Market Premium), lot size, and other live updates.

With two major subsidiaries — CMPDIL and BCCL — heading for IPOs, Coal India is setting the stage for a new phase of market-driven growth. For investors eyeing PSU stocks with stable fundamentals and government backing, these IPOs offer a strong value proposition.

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