Coal India subsidiary BCCL eyes ₹1,300 crore IPO in 2026:Parent company to divest 10% stake via offer for sale, as it moves to unlock its actual market value

Bharat Coking Coal Limited (BCCL), a subsidiary of state-run mining firm Coal India, plans to enter the stock market next year with a ₹1,300 crore initial public offering (IPO). It will likely be the first company, allied to a “maharatna” public-sector undertaking, to enter the market in early 2026, in a major step to “unlock its actual value”. The Entire Issue Will be Offer for Sale (OFS) BCCL’s IPO size, or Offer for Sale (OFS), could be around ₹1,300 crore, with a pre-listing valuation of ₹13,000 crore. Under the plan, Coal India will sell about 10% of its stake in BCCL (approximately 46.57 crore equity shares). Since it is not a fresh issue, the entire IPO money will go to its parent Coal India. The purpose of the stake sale is reportedly to assess BCCL’s market value. Appointment of Independent Directors Is Pending However, the pending appointment of six independent directors to BCCL’s board could be a hurdle, as it can file the Red Herring Prospectus (RHP) only after these positions are filled. According to sources, the Coal Ministry has placed the matter before Cabinet Secretary T.V. Somanathan and demanded expediting the appointments so that the IPO process stays on track. The Securities and Exchange Board of India (Sebi) approved the BCCL’s draft papers in September 2024. ICICI Securities and IDBI Capital are the lead managers for the issue. BCCL is a Major Company in the Steel Industry BCCL is one of the important coking coal producing companies in the country. Coking coal is primarily used as raw material in steel manufacturing. Additionally, the company produces non-coking coal and washed coal, used in the power sector. BCCL was incorporated in 1972. Its mines are mainly located in Jharia coalfields of Jharkhand and Raniganj coalfields of West Bengal, considered among India’s richest coal regions. BCCL’s Coal Production Up 33% in 3 Years BCCL has increased its production in the last few years. The company’s coal production in fiscal year 2022 was 30.51 million tonnes, which increased to 40.50 million tonnes in fiscal year 2025, about 33% production growth in three years. In FY2025, BCCL’s revenue was around ₹14,000 crores, the profit was ₹1,240 crores, and the net profit was ₹6,551 crores, up from ₹3,791 crores two years ago. The company currently has no debt. Coal India Holds 80% Share in Coal Production Coal India holds more than 80% share in the country’s total coal production. BCCL’s listing is part of Coal India’s strategy to unlock the value of its subsidiary companies. Coal India is also focusing on its expansion, with a 1,600 megawatt pithead power project in Odisha at an estimated cost of ₹16,000 crores. Additionally, work is underway on a 50:50 joint venture power project with Damodar Valley Corporation (DVC). ​