Coal India arm BCCL to raise ₹1,071 cr via IPO; sets price band at ₹21-23 per share

State-owned Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India , has fixed the price band for its upcoming initial public offering (IPO) at ₹21-23 per share, aiming to raise ₹1,071 crore at the upper end of the issue price. The company has proposed to offer a discount of ₹1 per share to its eligible employees.

The PSU IPO is entirely an offer for sale (OFS) of 46.57 crore equity shares by its parent, Coal India. Under the OFS, the country’s largest coal miner will offload a 10% equity stake in BCCL.

The BCCL IPO will open for subscription on January 9, 2026, and close on January 13, while the tentative date for listing of shares on the BSE and NSE is January 16.

As per the DRHP filed with Sebi, the company has reserved 50% of the issue for qualified institutional buyers (QIBs), while retail and non-institutional investors will get 35% and 15%, respectively, of the offer.

Meanwhile, shares worth ₹107 crore have been reserved for eligible shareholders of Coal India under a dedicated shareholder quota. Investors who held Coal India shares on or before January 1, 2026, and continue to hold them as of the record date, will be eligible to apply in this category, as per the offer documents.

The minimum application amount for a retail investor is ₹13,800 for one lot of 600 shares.

On the financial front, BCCL reported total income of ₹6,311.51 crore and profit after tax (PAT) of ₹123.88 crore for the six months ended September 30, 2025.

For the full year ended March 31, 2025, BCCL posted total income of ₹14,401.63 crore, marginally lower than ₹14,652.53 crore in FY24. PAT declined to ₹1,240.19 crore in FY25 from ₹1,564.46 crore in FY24, while EBITDA stood at ₹2,356.06 crore compared with ₹2,493.89 crore a year earlier.

As of September 30, 2025, total assets stood at ₹18,711.13 crore, up from ₹17,283.48 crore at the end of FY25. Net worth was ₹5,830.89 crore, though lower than ₹6,551.23 crore a year earlier, largely due to reduced reserves and surplus. Total borrowings stood at ₹1,559.13 crore.

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 ₹16.25 over the issue price, indicating a potential premium listing of 70.65%.

BCCL had filed its draft red herring prospectus (DRHP) with 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.

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