Another Coal India subsidiary files draft papers for IPO
What's the story
Bharat Coking Coal Limited (BCCL) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India(SEBI). The state-owned subsidiary of Coal India is gearing up for an initial public offering (IPO). The move comes after another Coal India subsidiary, Central Mine Planning & Design Institute Ltd (CMPDIL), submitted its own DRHP for an IPO, a week ago.
Strategic importance
BCCL's role in India's steel industry
BCCL was established with the objective of mining and supplying high-grade coking coal (also known as metallurgical coal), a specific type of coal used primarily in the production of steel. The company plays a vital role in meeting the country's demand for coal. Coal India alone accounts for over 80% of domestic coal output.
IPO details
IPO will be an offer for sale
The upcoming IPO of BCCL will be entirely an offer for sale, with no new shares being issued. Coal India plans to sell up to 46.5 crore shares in this process. The DRHP filing has been submitted to SEBI, BSE, and NSE and is subject to receipt of applicable approvals, market conditions, and other relevant considerations.
Information
Coal India reports 12% rise in net profit
In the March quarter, Coal India reported a 12% increase in its consolidated net profit to ₹9,604.02 crore. The company's profit was boosted by higher income during the period. In the corresponding period last year, Coal India had posted a net profit of ₹8,572.14 crore.