The entire issue will be an offer-for-sale (OFS), with parent Coal India divesting around 10% stake—roughly 46.57 crore shares—based on a pre-IPO valuation of ₹13,000 crore. Proceeds will flow directly to Coal India, aimed at gauging BCCL's standalone market worth.
A potential delay looms over the appointment of six independent directors to BCCL's board, a prerequisite for filing the red herring prospectus. The Coal Ministry has urged Cabinet Secretary T.V. Somanathan to fast-track the process.
SEBI cleared BCCL's draft papers in September 2024, with ICICI Securities and IDBI Capital as book-running lead managers.
BCCL dominates domestic coking coal supply, vital for steel production, alongside non-coking and washed coal for power plants. Incorporated in 1972, its operations centre on the rich Jharia fields in Jharkhand and Raniganj in West Bengal.
Output has surged 33% in three years, from 30.51 million tonnes in FY2022 to 40.50 million tonnes in FY2025. Revenue hit ₹14,000 crore last fiscal, with net profit jumping to ₹6,551 crore from ₹3,791 crore two years prior. The debt-free balance sheet adds appeal.
Coal India, controlling over 80% of national production, views the listing as part of broader value-unlocking efforts for subsidiaries. It is also advancing a ₹16,000 crore, 1,600 MW pithead power plant in Odisha and a 50:50 JV with Damodar Valley Corporation.
The move aligns with government pushes for PSU divestments amid buoyant primary markets.
