Bharat Coking Coal IPO: How much Coal India stands to earn by divesting a 10% stake
Bharat Coking Coal IPO: How much Coal India stands to earn by divesting a 10% stake
The BCCL IPO marks the first step in Coal India’s planned divestment of its key subsidiaries and is also the first mainboard public issue of 2026. BCCL stated that the offering is intended to unlock value from Coal India’s subsidiary.
Coal India (CIL) shares have remained in the spotlight over the past few sessions, driven by news and speculation surrounding the upcoming IPOs of its subsidiaries.
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One of Coal India’s subsidiaries, Bharat Coking Coal Ltd (BCCL), is scheduled to launch its initial public offering (IPO) on January 9, with the issue closing on January 13. The shares are expected to debut on the BSE and NSE on January 16, 2026.
The IPO is entirely an offer for sale (OFS), meaning BCCL will not receive any funds from the issue. Instead, all proceeds will go to its parent company, Coal India Ltd.
As outlined in BCCL’s Red Herring Prospectus (RHP), Coal India is expected to generate a profit of over ₹600 crore by selling a 10% stake in BCCL through the IPO. The miner’s weighted average acquisition cost of BCCL shares is ₹10 per share, while the IPO price band has been set at ₹21–₹23 per share, implying a gain of ₹12–13 per share on the divested stake.
At the upper end of the price band, Coal India is likely to receive approximately ₹1,071 crore from the issue. After accounting for the acquisition cost of around ₹466 crore, the net profit is estimated at nearly ₹605 crore, representing a return of about 130% on the original investment.
BCCL’s listing marks the first mainboard IPO of 2026 and is also the first step in Coal India’s planned divestment of its major subsidiaries. The company stated that the IPO is intended to unlock value within Coal India’s subsidiary portfolio.
This move is part of Coal India’s broader strategy to monetise its key arms. The board has already approved IPO plans for other subsidiaries, including Mahanadi Coalfields Ltd and South Eastern Coalfields Ltd.
Amid growing investor interest in these upcoming listings, Coal India shares have risen 6.29% over the past five trading sessions.
About Coal India
Coal India Limited (CIL) is a public sector undertaking and the world’s largest government-owned coal producer. Headquartered in Kolkata, it operates under the Ministry of Coal, Government of India, and holds Maharatna status, which grants it greater operational and financial autonomy.
CIL has seven coal-producing subsidiaries: Eastern Coalfields Ltd (ECL), Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL), South Eastern Coalfields Ltd (SECL), Northern Coalfields Ltd (NCL), and Mahanadi Coalfields Ltd (MCL), along with a mine planning and consultancy arm, Central Mine Planning & Design Institute (CMPDI). It also has an overseas subsidiary, Coal India Africana Limitada (CIAL), in Mozambique. The North Eastern Coalfields in Assam are managed directly by CIL.
Coal production
According to its official website, CIL accounts for about 83% of India’s total coal production, with coal contributing roughly 57% of the country’s primary commercial energy needs. CIL alone fulfills around 40% of this requirement.
Coal is expected to maintain a significant share of 48–54% in India’s energy mix until 2040 and currently supports about 76% of the utility sector’s thermal power generation capacity. The company supplies coal at prices lower than international benchmarks, helping shield domestic consumers from global price fluctuations.
CIL states that its pricing and supply policies enhance the global competitiveness of Indian industries and support initiatives such as “Make in India,” strengthening India’s position on the global stage.