BCCL IPO: Over the past couple of sessions, Coal India (CIL) shares have been the focus of attention due to the news around the upcoming IPOs of its subsidiaries.
On January 9, Bharat Coking Coal Ltd. (BCCL), one of its subsidiaries, would go public. The shares are expected to float on the BSE and NSE on January 16, 2026, before the public offer ends on January 13.
Since the offering is only an offer for sale (OFS), Coal India will get all revenues from the IPO and BCCL will not receive any.
State-owned miner Coal India Ltd. is expected to make around 600 crore by selling a 10% share in BCCL through the latter’s upcoming initial public offering (IPO), according to BCCL’s Red Herring Prospectus (RHP).
The paper states that Coal India’s weighted average cost of buying BCCL shares is 10 per share. The miner is anticipated to make a profit of 12–13 per share on the stake being sold, with the IPO price band set at 21–₹23 per share.
Coal India will receive about 1,071 crore from the IPO, which is a 100% offer for sale (OFS) offering, at the high end of the pricing range. The net gain is around 605 crore after accounting for the purchase cost of about 466 crore. This is a return of about 130% on the initial investment.
The BCCL listing is both the first mainboard offering of 2026 and the first of many planned divestitures of Coal India’s principal subsidiaries. According to BCCL, the upcoming IPO is intended to unleash wealth in the subsidiary of Coal India.
Coal India’s overall plan to profit from its main subsidiaries includes the BCCL IPO. Other branches of the business, such as Mahanadi Coalfields Ltd. and South Eastern Coalfields Ltd., have already had their initial offerings to the public (IPOs) aproved by the board.
Over the past five sessions, Coal India’s stock has increased 6.29% due to the excitement around the IPOs of its subsidiaries.
About Coal India
The world’s biggest government-owned coal producer is Coal India Limited (CIL), an Indian public sector company (PSU). It is managed by the Government of India’s Ministry of Coal and has its headquarters in Kolkata.
CIL is a Maharatna company, which is a special status granted by the Indian government to a number of state-owned businesses to enable them to grow and become important players in the world economy.
Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL), and Central Mine Planning & Design Institute (CMPDI) have been CIL’s seven producing subsidiaries.
Also, Coal India Africana Limitada (CIAL), a foreign company of CIL, is located in Mozambique. CIL is directly in charge of managing the mines in Assam, namely the North Eastern Coalfields.
Production of CIL coal
Approximately 57% of primary commercial energy in India depends on coal, and CIL produces about 83% of the country’s total coal production, according to its official website.
40% of the principal commercial energy needs are satisfied by CIL alone. Coal makes up 76% of the utility sector’s total thermal power producing capacity, and its share is expected to be high at 48–54% until 2040.
The company also states that it protects Indian coal users from price swings by supplying coal at a discount to global pricing.
It claims that CIL contributes greatly to “Make in India” and India’s global competitiveness, as well as making the end-user sector globally competitive.
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