Central Mine shares debut 7% below IPO price amid volatility
What's the story
Central Mine Planning & Design Institute Ltd (CMPDI) made a lackluster debut on the Indian stock market today. The company's shares opened at ₹160 on the National Stock Exchange (NSE) and ₹162.80 on the Bombay Stock Exchange (BSE), both below its initial public offering (IPO) price of ₹172 per share. This translates to a loss of around 7% for those who received shares in the CMPDI IPO allotment.
Market performance
CMPDI IPO proceeds to Coal India
The CMPDI IPO was open for subscription from March 20 to March 24, with allotment finalized on March 25. The issue was fully subscribed at 1.05 times, with Retail Individual Investors (RIIs) subscribing at 33% and Non-Institutional Investors (NIIs) at 35%. Qualified Institutional Buyers (QIBs) led the demand by subscribing at an impressive rate of 3.48 times. Notably, all money raised through this public offering will go directly to Coal India as CMPDI won't receive any financial proceeds from it.
Company profile
CMPDI offers coal and mineral consultancy
Founded in 1975 as a wholly-owned subsidiary of Coal India, CMPDI provides consultancy and technical support services in coal and mineral exploration, mine planning and design, infrastructure engineering, and environmental management. Shivani Nyati from Swastika Investmart said the stock will likely be sentiment-driven in the short term. She advised traders to keep a stop loss below ₹150 considering broader market conditions may remain weak.