The Indian primary market in 2026 is set to kick off with a high-profile state-owned listing, with Bharat Coking Coal Ltd., a wholly owned subsidiary of Maharatna PSU Coal India, planning to launch its initial public offering within the next two weeks, as per an ET Now report.
The IPO size is expected to be around Rs 1,300 crore, implying a pre-listing valuation of nearly Rs 13,000 crore for BCCL. Key details such as the price band, lot size and issue structure are likely to be finalised closer to the launch, in consultation with the book-running lead managers.
The proposed issue is expected to be a pure Offer for Sale, with Coal India divesting a 10% equity stake in its subsidiary. Under the OFS, Coal India is set to offload approximately 46.57 crore equity shares. As there is no fresh issue component, the entire IPO proceeds will accrue to Coal India, and not to Bharat Coking Coal’s balance sheet.
ICICI Securities and IDBI Capital Markets and Securities have been appointed as the book-running lead managers, while KFin Technologies will act as the registrar to the issue.
BCCL had filed its draft red herring prospectus with market regulator SEBI, as well as the BSE and NSE, in May this year, and received regulatory approval from SEBI in September.
Sources told PTI that the speedy filling of six vacant independent director positions on BCCL’s board is critical to the listing timeline. The Coal Ministry has informed Cabinet Secretary T V Somanathan that these vacancies need to be filled expeditiously, as SEBI norms require all independent directors to be in place before filing the final Red Herring Prospectus.
The BCCL IPO forms part of the government’s broader divestment strategy in the coal sector, aimed at unlocking value in Coal India’s subsidiaries and enhancing operational transparency through market listings. Another Coal India subsidiary, Central Mine Planning and Design Institute Ltd., has also filed its DRHP with SEBI for a proposed IPO. While BCCL is a coal-producing arm, CMPDI functions as Coal India’s technical arm.
Established in 1972, Bharat Coking Coal was mandated to mine and supply high-grade coking coal, making it a critical supplier to India’s steel industry. The company is among the country’s most important producers of coking coal, a key raw material for steel manufacturing, and also produces non-coking and washed coal for the steel and power sectors.
BCCL’s mining operations are concentrated in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal, two of India’s most coal-rich regions. Coal India, its parent, accounts for over 80% of India’s domestic coal output.
Coal India reported a 12% year-on-year rise in consolidated net profit to Rs 9,604.02 crore for the March quarter of FY25, compared with Rs 8,572.14 crore in the same period last year.
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