Coal India To Make Over Rs 600 Crore Profit From BCCL IPO At Upper Price Band
The BCCL listing is the first in a series of planned divestments of Coal India's major subsidiaries and also the first mainboard issue of 2026.
State-owned miner Coal India Ltd. is set to pocket a profit of over Rs 600 crore by divesting a 10% stake in its subsidiary Bharat Coking Coal Ltd. through the latter's upcoming initial public offering, according to the offer document.
As per the Red Herring Prospectus, Coal India's weighted average cost of acquisition of BCCL shares stands at Rs 10 per share. With the IPO price band fixed at Rs 21-23 per share, the miner is expected to earn a profit of Rs 12-13 per share on the stake being sold.
At the upper end of the price band, Coal India will receive around Rs 1,071 crore from the IPO, which is a 100% offer for sale issue. After factoring in the acquisition cost of about Rs 466 crore, the net gain works out to nearly Rs 605 crore, translating into a return of around 130% on the original investment.
The BCCL listing is the first in a series of planned divestments of Coal India's major subsidiaries and also the first mainboard issue of 2026. BCCL said the proposed IPO is aimed at unlocking value in Coal India's subsidiary.
The BCCL listing is part of Coal India's broader plan to monetise its key subsidiaries. The company's board has already approved IPOs of other arms, including Mahanadi Coalfields Ltd. and South Eastern Coalfields Ltd.
The IPO will open for subscription on Jan. 9 and close on Jan. 13, with the shares scheduled to list on the BSE and NSE on Jan. 16, 2026.
Since the issue is entirely an offer for sale, BCCL will not receive any proceeds from the IPO, and the entire amount will accrue to Coal India.
In the unofficial grey market, BCCL shares are reportedly commanding a premium of Rs 13.5-Rs 14 over the likely issue price.
Market participants said expectations around subsidiary listings have supported Coal India's stock in the last five days by 6.29% at Rs 426 a share.
