CMPDI IPO Day 2 Subdued: COALINDIA Divestment Faces Headwinds

The Central Mine Planning & Design Institute (CMPDI) IPO, a divestment by Coal India, has only been subscribed 7% by Day 2. The offering aims to raise ₹1,837.8 crore through the sale of 10.71 crore shares, with a price band of ₹163-₹172 per share.

This subdued initial response to a PSU IPO, especially one from a Coal India subsidiary, is significant. It could reflect broader investor sentiment towards government divestments or specific concerns about the valuation or future prospects of CMPDI, potentially influencing future PSU IPOs.

The primary impact is on COALINDIA, as the success of this IPO directly relates to its divestment strategy and potential capital infusion. A weak subscription might force a re-evaluation of pricing or future divestment plans, creating a slight negative overhang for COALINDIA. Other PSU stocks might also see cautious sentiment if this trend continues.

Traders should closely watch the final subscription figures for the CMPDI IPO on its last day. Any significant improvement or continued lack of interest will provide clearer signals. Also, observe the listing performance of CMPDI, if it lists, as it will set a precedent for upcoming PSU offerings.

• •CMPDI IPO subscribed 7% on Day 2.
• •Price band set between ₹163 and ₹172 per share.
• •IPO scheduled for March 20-24.
• •Aims to raise ₹1,837.8 crore through sale of 10.71 crore shares.
• •Shares being sold by Coal India.