Valuation Crosses Rs 10,700 Crore at Upper End
Bharat Coking Coal Ltd, a subsidiary of Coal India, has fixed a price band of Rs 21 to Rs 23 per equity share for its upcoming initial public offering worth Rs 1,071 crore. At the upper end of the band, the company commands a valuation of over Rs 10,700 crore.The IPO marks the first public issue of 2026 and will open for subscription on January 9. The issue is scheduled to close on January 13, with anchor investor bidding slated for January 8.
Entire Issue an Offer for Sale by Coal India
According to the red herring prospectus, the IPO is entirely an offer for sale of 46.57 crore equity shares by Coal India. At the higher end of the price band, the issue size aggregates to Rs 1,071.11 crore. No fresh equity shares are being issued, and proceeds will accrue to the selling shareholder.The listing forms part of the government’s broader divestment strategy in the coal sector, aimed at unlocking value in subsidiaries and strengthening transparency through market participation.
Allocation Structure and Listing Timeline
As per the issue structure, 50 percent of the IPO has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non institutional investors. Bharat Coking Coal is scheduled to debut on the stock exchanges on January 16.Business Overview and Operations
Bharat Coking Coal Ltd was incorporated in 1972 and is engaged in the mining and supply of coking coal. Its operations are concentrated in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal.The company produces multiple grades of coking coal, non coking coal, and washed coal, catering primarily to the steel and power sectors. It operates 34 mines as of September 30, 2025, comprising 4 underground mines, 26 opencast mines, and 4 mixed mines.
Production Growth and Financial Performance
Bharat Coking Coal was the largest coking coal producer in India in FY25. Coal production rose from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25, reflecting a growth of 33 percent. During the six month period ended September 30, 2025, production stood at 15.75 million tonnes compared with 19.09 million tonnes in the corresponding year ago period.On the financial front, revenues from operations stood at Rs 13,802 crore in FY25, while net profit for the year came in at Rs 1,204 crore.
IPO in a Strong Primary Market Environment
The BCCL offering comes amid a strong phase for the primary market. In 2025, companies raised nearly Rs 1.76 lakh crore through IPOs, surpassing the Rs 1.6 lakh crore raised in 2024 and significantly higher than the Rs 49,436 crore mobilised in 2023. The momentum has been supported by robust domestic liquidity, resilient investor sentiment, and a favourable macroeconomic backdrop.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.