Coal India unit Central Mine Planning valued at $1.3 billion in muted debut

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By Vivek Kumar M Central Mine Planning & Design Institute NSE:CMPDI, a unit of state-run Coal India NSE:COALINDIA, made a tepid trading debut on Monday, pressured by broader market weakness tied to the month-long Middle East conflict and concerns over the company's reliance on its parent.Shares of Central Mine Planning, which provides consultancy and support services for coal and mineral exploration, listed at 160 rupees on the National Stock Exchange of India, below their issue price of 172 rupees. The shares were at 165.5 rupees at 10:21 a.m. IST, valuing the firm at 117.67 billion rupees ($1.25 billion). India's benchmark Nifty 50 NSE:NIFTY was down 1.2%. Central Mine Planning's $199-million IPO comes at a time when investors are pulling money out of risk assets globally as the U.S.-Israel war on Iran drives crude oil prices higher, raising growth and inflation worries."We had a neutral view on the IPO given the company's high dependence on Coal India for revenue. The weak listing can also be attributed to volatile markets, where the focus right now is just the Middle East war," said Anita Gandhi, head of institutional business at Arihant Capital Markets.Central Mine Planning gets about 90% of its revenue from Coal India, the world's largest coal miner.The Middle East war has weighed on an already weak IPO market in India, with shares of only four of the 14 companies listing at a premium to their issue price this year.Last week, bidding for Central Mine Planning IPO was driven by institutional buyers while retail investors, non-institutional investors, and Coal India's shareholders bid for less than half of the shares kept aside for them.This is in contrast to the successful listing of Bharat Coking Coal NSE:BHARATCOAL, another subsidiary of Coal India, earlier this year. Central Mine Planning reported a profit of 4.25 billion rupees for a nine-month period ended December 2025, up roughly 9% from a year-ago period. ($1 = 93.9450 Indian rupees)

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