Central Mine Planning & Design Institute shares worth over ₹9,500 crore free up today as lock-in ends

Shares of Central Mine Planning and Design Institute Ltd. (CMPDI) may react on Tuesday, October 6, as its shareholder lock-in period comes to an end.

According to Nuvama Alternative & Quantitative Research, CMPDI will see its six-month shareholder lock-in come to an end on Tuesday. As many as 464 million shares of the company will free up for trade as the lock-in ends.

It must be noted that the end of the shareholder lock-in period does not mean that all the shares will be sold in the open market. They only become eligible to be traded.

The number of CMPDI shares that become eligible to be traded amount to 65% of the company's outstanding equity.

Based on Monday's closing price of CMPDI, the value of the shares that become eligible to be traded, is worth ₹9,558 crore.

Central Mine Planning is a subsidiary of India's largest miner Coal India Ltd., which listed on the bourses on March 30 this year. In comparison to its IPO price of ₹172 per share, the stock listed at a 7% discount.

The stock went on to make a post-listing high of ₹283.69, which is 64% higher than its issue price. However, the stock has corrected significantly from those levels, returning back to levels of ₹200.

CMPDI promoter Coal India continues to hold a 85% stake in the company at the end of the June quarter, above the minimum shareholding limit of 75%. Among public shareholders, Mutual Funds had a 4.75% stake, while Life Insurance Corporation of India (LIC) had a 2.39% stake. As many as 73,000 retail shareholders, or those with authorized share capital of up to ₹2 lakh, had 3.9% stake.

Shares of CMPDI ended 0.8% higher on Monday at ₹206. The stock is down 14% in the last one month.