Coal India shares surge 10% this month as Bharat Coking Coal IPO receives strong response

Coal India shares are in the spotlight today, rising over 3% with a day high of ₹442 per share and a day low of ₹427.40 on NSE. Coal India shares have risen 4.7% so far this week and nearly 10% this month.

Coal India is witnessing strong investor traction after its subsidiary Bharat Coking Coal (BCCL) IPO saw a thunderous response from investors. BCCL IPO, which was a complete offer-for-sale, was subscribed 146.87 times overall between 9 to 13 January. The retail Investors category was booked 49.33 times, while the Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) quota was booked 258.1 times and 310.8 times. The portion reserved for the Coal India shareholders was subscribed 87.29 times.

Since the BCCL IPO is a complete offer-for-sale, all the net IPO proceeds will go to the selling promoter, Coal India. Experts believe this is positive for Coal India as the company can utilise the same funds for business expansion or distribute as a dividend to its shareholders. Coal India announced its last interim dividend of ₹10.25 per share in November 2025 and has a history of giving consistent dividend payouts to shareholders.

Coal India production

PSU miner reported a 4.6% year-on-year increase in coal production to 75.7 million tonnes (MT) in December. Meanwhile, its year-to-date production stood at 529.2 MT, which is 2.6% lower despite a monthly uptick.

Coal India has so far achieved about 60% of its full-year production guidance of 875 MT for FY26. Coal India’s output typically remains subdued during the first half of the year due to the monsoon season, before accelerating in the latter half.

Upcoming Coal India subsidiary IPOs

Coal India board has given its in-principle approval to launch two more IPOs of its subsidiaries after the successful subscription to Bharat Coking Coal IPO. Coal India wholly-owned subsidiaries, Mahanadi Coalfields (MCL) and South-Eastern Coalfields (SECL), public issue plans are already underway. Both these subsidiaries contribute 29.4% and 22.4% to overall Coal India production till Q3FY26.