Bharat Coking Coal IPO: Here is how much Coal India will pocket by divesting 10% stake

One of its subsidiaries, Bharat Coking Coal Ltd (BCCL), is set to launch its IPO on January 9. The public offer will close on January 13, with the shares scheduled to list on the BSE and NSE on January 16, 2026.

Since the issue is entirely an offer for sale (OFS), BCCL will not receive any proceeds from the IPO, and the entire amount will accrue to Coal India.

According to BCCL's Red Herring Prospectus (RHP), state-owned miner Coal India Ltd is set to pocket a profit of over ₹600 crore by divesting a 10% stake in BCCL through the latter's upcoming initial public offering (IPO).

As per the document, Coal India's weighted average cost of acquisition of BCCL shares stands at ₹10 per share. With the IPO price band fixed at ₹21-₹23 per share, the miner is expected to earn a profit of ₹12-13 per share on the stake being sold.

At the upper end of the price band, Coal India will receive around ₹1,071 crore from the IPO, which is a 100% offer for sale (OFS) issue. After factoring in the acquisition cost of about ₹466 crore, the net gain works out to nearly ₹605 crore, translating into a return of around 130% on the original investment.

The BCCL listing is the first in a series of planned divestments of Coal India's major subsidiaries and also the first mainboard issue of 2026. BCCL said the proposed IPO is aimed at unlocking value in Coal India's subsidiary.

The BCCL listing is part of Coal India's broader plan to monetise its key subsidiaries. The company's board has already approved IPOs of other arms, including Mahanadi Coalfields Ltd and South Eastern Coalfields Ltd.

Given the buzz around its subsidiaries' IPOs, shares of Coal India have rallied 6.29% over the past five sessions.

About Coal India

Coal India Limited (CIL) is an Indian public sector undertaking (PSU) and the largest government-owned coal producer in the world. Headquartered in Kolkata, it is under the administrative control of the Ministry of Coal, Government of India.

CIL is a Maharatna company – a privileged status conferred by the Government of India to select state-owned enterprises in order to empower them to expand their operations and emerge as global giants.

CIL has seven producing subsidiaries, namely Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), and Mahanadi Coalfields Limited (MCL), and one mine planning and consultancy company, Central Mine Planning & Design Institute (CMPDI).

In addition, CIL has a foreign subsidiary in Mozambique, namely Coal India Africana Limitada (CIAL). The mines in Assam, i.e., the North Eastern Coalfields, are managed directly by CIL.

CIL coal production

CIL, according to its official website, produces around 83% of India’s overall coal production in India, where approximately 57% of primary commercial energy is coal-dependent.

CIL alone meets 40% of the primary commercial energy requirement. The share of coal is expected to remain high at 48-54% till 2040 and accounts for 76% of the total thermal power generating capacity of the utility sector.

The company adds that it supplies coal at prices discounted to international prices and insulates Indian coal consumers against price volatility.

CIL, it says, makes the end-user industry globally competitive and plays a key role in “Make in India” and making India globally competitive.