Coal India arm BCCL to launch 2026’s first IPO on Jan 9; PSU aims to raise ₹1,300 crore

Bharat Coking Coal Ltd (BCCL), India’s largest producer of coking coal and a wholly owned subsidiary of Coal India Ltd (CIL) , is set to kick off the initial public offering (IPO) calendar for 2026, with its public issue expected to open next week. As per reports, the PSU IPO could hit Dalal-Street on January 9, while key details including the price band, lot size and final issue structure will be unveiled on January 5.

The proposed IPO is entirely an offer for sale (OFS) of 46.57 crore equity shares with a face value of ₹10 each. Through the issue, Coal India plans to dilute around 10% of its equity stake in BCCL. The PSU looks to raise approximately ₹1,300 crore, valuing the company at nearly ₹13,000 crore ahead of listing.

The issue is expected to open for bidding from January 9 to January 13, as per report. At least 35% of the net issue will be reserved for retail investors. In addition, the IPO is expected to feature a dedicated shareholder quota for existing Coal India shareholders, allowing applications of up to ₹2 lakh under a separate category. A portion of the issue will also be reserved for BCCL employees, the report said.

Ahead of the IPO, the company has already created buzz in the unlisted market, with BCCL’s shares commanding a grey market premium (GMP) of around ₹11–₹14.

BCCL had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on June 5, 2025, and received regulatory approval on September 19, 2025.

Incorporated in 1972, BCCL mines and supplies various grades of coking coal, non-coking coal and washed coal, primarily catering to the steel and power industries. Its operations are concentrated in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal—India’s only significant source of prime coking coal.

On the financial front, BCCL has posted a mixed performance over the past few years. The company reported revenue of ₹13,296.73 crore in FY2023, which rose to ₹14,045.34 crore in FY2024 before moderating slightly to ₹13,998.45 crore in FY2025. Net profit jumped sharply to ₹1,564.46 crore in FY2024 from ₹664.78 crore a year earlier, but eased to ₹1,240.19 crore in FY2025. For the first half of FY2026, BCCL reported revenue of ₹5,659.02 crore and net income of ₹123.88 crore, with margins narrowing to just over 2%.

As the first IPO of 2026, BCCL’s listing will be closely watched as a barometer of investor appetite for PSU offerings in the new year, particularly in a market that has become increasingly selective on valuations and earnings visibility.

Last month, CIL informed stock exchanges that its board had granted in-principle approval to initiate the IPO process for two of its subsidiaries—Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL).

In a post-market release dated December 23, CIL said the Ministry of Coal, through an office memorandum issued on December 16, 2025, had urged the company to take concrete steps towards listing the two subsidiaries in the financial year 2026–27. Acting on this advisory, Coal India’s board approved the proposal through a circular resolution.

The company said the decision will now be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM). The proposed in-principle listings of MCL and SECL are subject to the completion of various regulatory approvals, the release added.

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