Investor enthusiasm sets positive tone for value unlocking plans
The strong investor response to the initial public offering of Bharat Coking Coal Ltd has strengthened confidence within Coal India Ltd, providing fresh momentum as the company evaluates stock market listings for its other subsidiaries.The IPO of Bharat Coking Coal, a wholly owned arm of Coal India, was fully subscribed within minutes of opening for bidding on January 9. The issue continued to attract sustained demand through the bidding period, ultimately closing with an overall subscription of more than 146 times.
Market response reinforces listing strategy
Coal India Chairman and Managing Director B Sairam said the strong response has reinforced confidence within the miner as it moves ahead with plans to unlock value through capital market listings.He said the company will carefully study market dynamics and valuations before taking further steps, adding that the experience gained from the BCCL IPO will be valuable when assessing future listings of other subsidiaries.
Coal India has been encouraged by the government to unlock value through subsidiary listings as part of the broader public sector reform agenda.
Roadmap for other Coal India subsidiaries
Coal India has eight wholly owned subsidiaries, of which seven are coal producing companies. Beyond the listing of its coking coal arm, the company is moving ahead with the capital market debut of other key units.Central Mine Planning and Design Institute Ltd, the consultancy and technical arm of Coal India, has already filed its draft red herring prospectus with the Securities and Exchange Board of India. The proposed IPO is an offer for sale of up to 7.14 crore equity shares, representing a 10 percent stake divestment by Coal India, and is expected to be completed by March 2026.
In addition, the Coal India board has granted in principle approval for the listing of Mahanadi Coalfields Ltd and South Eastern Coalfields Ltd, two of its largest production subsidiaries. Their market debuts are targeted for the 2026 to 27 financial year, following a directive from the Ministry of Coal.
BCCL listing scheduled for January 19
The market debut of Bharat Coking Coal is now scheduled for Monday, January 19, after being rescheduled from January 16. The listing was deferred due to municipal corporation elections in Maharashtra, where both the BSE and the National Stock Exchange are headquartered.Coal India currently accounts for over 80 percent of India’s domestic coal production and operates through a mix of producing and non producing subsidiaries, positioning the company as a key player in the country’s energy supply chain.
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.