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CMPDIL Raises Rs4,700 mn From Anchor Investors Ahead Of IPO
ECONOMY & POLICY

CMPDIL Raises Rs4,700 mn From Anchor Investors Ahead Of IPO

Central Mine Planning and Design Institute (CMPDIL), a wholly owned subsidiary of state-owned Coal India, mobilised Rs4,700 mn from anchor investors ahead of its initial public offering. The funds were secured in an anchor allocation that preceded a public subscription opening on 20 March and closing on 24 March, with the company scheduled to debut on the stock market on 30 March. The mobilisation completed the pre-marketing stage and positioned the issue for subsequent retail and institutional bidding.

As set out in the circular uploaded to the exchange, CMPDIL allotted 27.3 mn equity shares to 22 funds at Rs172 per share, aggregating Rs4,697.4 mn. The anchor allocation was described as comprising a mix of life insurers, mutual funds and private equity and represented the bulk of the institutional support ahead of the public offer. The company indicated that the entire public issue is structured as an offer for sale by Coal India with no fresh issuance.

Life Insurance Corporation received an allocation amounting to Rs1,050 mn while Nippon India Mutual Fund, Edelweiss Mutual Fund, ICICI Prudential Mutual Fund, Baring Private Equity India Fund, General Insurance Corporation of India and Edelweiss Life Insurance were named among other anchor investors. International banks including Societe Generale, Citigroup, Goldman Sachs and BNP Paribas Financial Markets participated in the anchor round, providing underwriting and market-making support ahead of listing. The participation of these institutions was presented as a signal of confidence in the company's business model and sector positioning.

The price band has been fixed at Rs163 to Rs172 per share, valuing the company at about Rs122,800 mn at the higher end and placing the offer size at approximately Rs18,421.2 mn at the upper band. The offer comprises 107.1 mn shares representing the entire sale by the promoter and Coal India will receive the proceeds from the offer for sale. Allocation norms were indicated with 50 per cent reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors.

Central Mine Planning and Design Institute (CMPDIL), a wholly owned subsidiary of state-owned Coal India, mobilised Rs4,700 mn from anchor investors ahead of its initial public offering. The funds were secured in an anchor allocation that preceded a public subscription opening on 20 March and closing on 24 March, with the company scheduled to debut on the stock market on 30 March. The mobilisation completed the pre-marketing stage and positioned the issue for subsequent retail and institutional bidding. As set out in the circular uploaded to the exchange, CMPDIL allotted 27.3 mn equity shares to 22 funds at Rs172 per share, aggregating Rs4,697.4 mn. The anchor allocation was described as comprising a mix of life insurers, mutual funds and private equity and represented the bulk of the institutional support ahead of the public offer. The company indicated that the entire public issue is structured as an offer for sale by Coal India with no fresh issuance. Life Insurance Corporation received an allocation amounting to Rs1,050 mn while Nippon India Mutual Fund, Edelweiss Mutual Fund, ICICI Prudential Mutual Fund, Baring Private Equity India Fund, General Insurance Corporation of India and Edelweiss Life Insurance were named among other anchor investors. International banks including Societe Generale, Citigroup, Goldman Sachs and BNP Paribas Financial Markets participated in the anchor round, providing underwriting and market-making support ahead of listing. The participation of these institutions was presented as a signal of confidence in the company's business model and sector positioning. The price band has been fixed at Rs163 to Rs172 per share, valuing the company at about Rs122,800 mn at the higher end and placing the offer size at approximately Rs18,421.2 mn at the upper band. The offer comprises 107.1 mn shares representing the entire sale by the promoter and Coal India will receive the proceeds from the offer for sale. Allocation norms were indicated with 50 per cent reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors.

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