In a major development in India’s energy and capital markets, Bharat Coking Coal (BCCL), a wholly-owned subsidiary of Coal India (CIL), has submitted IPO papers with the Securities and Exchange Board of India (SEBI).
Bharat Coking Coal IPO will be a total OFS of up to 46.57 crore equity shares by Coal India, a strategic disinvestment by the Government of India through its Ministry of Coal. No fresh shares will be issued and the entire proceeds will go to the selling shareholder, CIL.
Coal India’s consultancy arm, Central Mine Planning and Design Institute (CMPDIL), recently filed its Draft Red Herring Prospectus (DRHP) for an Offer for Sale (OFS), as part of the government’s broader public sector divestment strategy.
Bharat Coking Coal IPO – Snapshot
- Type of Offer: Offer for Sale (OFS)
- Size of Offer: Up to 46.57 crore equity shares of face value INR 10 each
- Promoters: Coal India and the President of India
- Registrar: KFin Technologies Limited
- BRLM: IDBI Capital Markets & Securities, ICICI Securities
🏢 Company Snapshot: India’s Largest Coking Coal Producer
BCCL is India’s largest coking coal producer, accounting for 58.5% of India’s coking coal production in FY 2025. As of 1 April 2024, it has 7.91 billion tonnes of coking coal reserves—more than 21% of India’s total coking coal resources. It operates in Jharia and Raniganj coalfields with 32 active mines, 25 opencast, 3 underground and 4 mixed mines.
BCCL is a backbone to India’s steel and power sectors and will help the government’s Atma-Nirbhar Bharat vision by substituting coal imports with domestic production.
BCCL Financial Performance
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue from Operations | 13,296.73 | 14,045.34 | 13,998.45 |
| Net Profit | 664.78 | 1,564.46 | 1,240.19 |
| EBITDA | 891.31 | 2,493.89 | 2,356.06 |
| EBITDA Margin (%) | 6.51% | 17.26% | 16.14% |
| ROCE (%) | 16.56% | 47.20% | 30.13% |
| Return on Net Worth (%) | 19.22% | 34.21% | 20.83% |
| EPS (INR) | 1.43 | 3.36 | 2.66 |
| NAV per Share (INR) | 8.14 | 11.50 | 14.07 |
| Current Ratio | 0.96 | 1.21 | 1.19 |
BCCL operates with zero long-term debt, enhancing its financial flexibility. Its consistent capital expenditure—INR 1,814.90 crore in FY 2025—demonstrates long-term commitment to infrastructure modernization and coal beneficiation.
Operational Footprint and Efficiency
- Coal Production (FY25): 40.5 million tonnes
- Coking Coal Share: ~96% of total production
- Washed Coal Output (FY25): 4.81 million tonnes (coking + power coal)
- Raw Coal Sales: INR 10,169.00 crore (77.7% of total)
- Steel Sector Contribution: INR 2,375.20 crore (18.15%)
BCCL’s expansive mining leasehold area of 28,831 hectares ensures resource security and production scalability. The company has also started utilizing highwall mining and is increasingly deploying HEMM (Heavy Earth Moving Machinery) to improve cost-efficiency and safety.
A Balanced Outlook
BCCL is actively investing in coal washing technology, and is constructing or modernizing several washeries with a capital outlay of over INR 1,159 crore. It has also embarked on methane gas (CBM) extraction projects, diversifying energy outputs and aligning with green objectives.
Environmental restoration, biodiversity conservation, and reduced ash content coal production are central to its operational ethos. Collaborations with research institutions and CMPDIL—CIL’s technical arm—enhance its innovation pipeline.
IPO Implications
BCCL IPO will allow investors to gain exposure to a rare segment of India’s energy ecosystem: coking coal production, which has historically been import-reliant. With the government pushing for domestic substitution, BCCL becomes a critical player in this pivot.
Coal India’s decision to divest stakes in its subsidiaries (including CMPDIL, which also recently filed DRHP) indicates a broader government agenda of monetizing assets, deepening capital markets, and promoting corporate independence of its PSU arms.
Conclusion
BCCL IPO is more than a financial transaction—it’s a structural shift in India’s resource and capital strategy. As coking coal demand rises with renewed infrastructure and steel-led growth, BCCL’s dominant position, debt-free balance sheet, and strategic location set it up as a critical energy enabler and a promising value proposition for investors.
Pending regulatory approvals and market conditions, this IPO could mark one of the more transformative PSU listings in recent years. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.