This Coal India subsidiary is planning ₹1,300cr IPO in India
What's the story
Bharat Coking Coal (BCCL), a wholly-owned subsidiary of Coal India, is set to launch its initial public offering (IPO) within the next two weeks. The move comes as part of a broader strategy by Coal India to unlock value from its subsidiaries. The proposed public issue is likely to be a pure offer for sale with an estimated size of around ₹1,300 crore.
Stake sale
Coal India to divest 10% stake in BCCL
Coal India plans to sell about 10% of its equity stake in BCCL through the IPO. This would involve selling nearly 46.57 crore equity shares, with no fresh shares being issued. The entire proceeds from the IPO will go to Coal India and not BCCL itself. The pre-listing valuation for Bharat Coking Coal is estimated at around ₹13,000 crore.
Company performance
BCCL's operational scale and financial profile
BCCL is a major producer of coking coal, a key raw material for steel production. The company has been steadily increasing its production over the years. For FY24, BCCL produced 39.11 million tons of coking coal and 1.99 million tons of non-coking coal. The company's revenue from operations for the year ending March 2025 was around ₹14,000 crore with a profit of ₹1,240 crore, and net worth rising sharply to ₹6,551 crore from ₹3,791 crore two years earlier.
Market influence
Coal India dominates India's energy ecosystem
Coal India is a major player in India's energy ecosystem. It accounts for over 80% of the country's domestic coal production and runs seven coal-producing subsidiaries including BCCL. The proposed listing comes at a time when Coal India is also pushing critical mineral projects in India and abroad, as well as three coal gasification projects and pithead power plants to improve efficiency and reduce emissions.