Coal India's Arm Bharat Coking Coal Files Draft IPO Papers
Coal India Ltd. will be the promoter selling shares for the IPO. The shares have a face value of Rs 10.
Bharat Coking Coal Ltd. has filed its preliminary papers with the Securities and Exchange Board of India to offload over 46.5 crore equity shares via an initial public offering. The IPO will have no fresh issue.
Coal India Ltd. will be the promoter selling shares for the IPO. The shares have a face value of Rs 10. The equity shares are proposed to be listed on both the National Stock Exchange of India and BSE Ltd.
The firm filed the draft red herring prospectus with the markets regulator on May 30.
IDBI Capital Markets & Securities Ltd., and ICICI Securities Ltd. are the book-running lead managers for the issue.
The company expects that listing of the equity shares will enhance visibility, provide liquidity and a public market for the equity shares in India, it said in the DRHP.
The company will not receive any proceeds from the offer. All the proceeds will be received by promotors offloading stake, after deduction of offer related expenses and taxes borne.
Business
BCCL was the largest coking coal producer in India in fiscal 2025 in terms of coking coal production, as the company accounted for 58.50% of the domestic coking coal production in 2025, according to a CRISIL Report.
The company's primary product is coking coal, with an estimated reserve of approximately 7,910 million tonnes, as of April 1, 2024, reportedly making it one of the largest coking coal reserve holder in India.
BCCL produces various grades of coking coal, non-coking coal and washed coals for applications primarily in the steel and power industries. It is a wholly-owned subsidiary of Coal India Ltd., and was conferred with 'Mini Ratna' status in 2014. The company was incorporated in 1972 to mine and supply coking coal concentrated in mines located at Jharia, Jharkhand and Raniganj, West Bengal coalfields.
It has expanded its operations significantly over the years, with coal production increasing from 30.51 million tonnes in fiscal 2022 to 40.50 million tonnes in fiscal 2025, marking a 32.74% uptick. In 2024, BCCL produced 39.11 million tonnes of coking coal and 1.99 million tonnes of non-coking coal.
