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Coal India Plans More IPOs After BCCL Listing
COAL & MINING

Coal India Plans More IPOs After BCCL Listing

Fresh from divesting a 10 per cent stake in Coal India Ltd’s subsidiary Bharat Coking Coal Limited (BCCL), the state-run miner has drawn up a phased plan to list more subsidiaries to unlock value from its coking and non-coking coal assets, sources said. Following the initial public offering, Coal India plans to disinvest the remaining 15 per cent stake in BCCL within the next six months, potentially in phases, depending on market conditions.

Coal India is also preparing to take another subsidiary, the Central Mine Planning and Design Institute (CMPDI), to the market. Investor roadshows for CMPDI are expected to begin in February, with an initial public offering targeted for March. The proposed IPO is likely to be an offer for sale, similar to the BCCL issue, with Coal India initially divesting around 10–15 per cent.

In 2022, the company’s board had granted in-principle approval for divesting 25 per cent of BCCL’s paid-up share capital and listing the subsidiary, though the plan was not implemented at the time. BCCL produces the bulk of India’s coking coal, accounting for 58.50 per cent of domestic coking coal output in the 2024–25 financial year, according to its annual report.

CMPDI, headquartered in Ranchi, serves as Coal India’s technical and consultancy arm, providing research and support for mineral exploration, mining and infrastructure engineering.

In FY25, BCCL reported an annual profit of Rs 12.40 billion, compared with a profit after tax of Rs 15.64 billion in the previous year. Coal India has also lined up disinvestments in two other major subsidiaries, Mahanadi Coalfields Limited and South Eastern Coalfields Limited, over the coming months.

According to sources, after BCCL and CMPDI, Coal India plans to list Mahanadi Coalfields and South Eastern Coalfields in the next financial year, subject to government approval. BCCL and Mahanadi Coalfields together contribute around 50 per cent of India’s coal production, and Coal India intends to divest 25 per cent stakes in both to further unlock value.

Coal India’s other mining subsidiaries include Eastern Coalfields, Central Coalfields, Western Coalfields and Northern Coalfields, all of which are also slated for listing by 2030.

BCCL made a strong stock market debut on 19 January, listing at Rs 45.21 on the Bombay Stock Exchange, a premium of 96.56 per cent over the issue price.

Fresh from divesting a 10 per cent stake in Coal India Ltd’s subsidiary Bharat Coking Coal Limited (BCCL), the state-run miner has drawn up a phased plan to list more subsidiaries to unlock value from its coking and non-coking coal assets, sources said. Following the initial public offering, Coal India plans to disinvest the remaining 15 per cent stake in BCCL within the next six months, potentially in phases, depending on market conditions. Coal India is also preparing to take another subsidiary, the Central Mine Planning and Design Institute (CMPDI), to the market. Investor roadshows for CMPDI are expected to begin in February, with an initial public offering targeted for March. The proposed IPO is likely to be an offer for sale, similar to the BCCL issue, with Coal India initially divesting around 10–15 per cent. In 2022, the company’s board had granted in-principle approval for divesting 25 per cent of BCCL’s paid-up share capital and listing the subsidiary, though the plan was not implemented at the time. BCCL produces the bulk of India’s coking coal, accounting for 58.50 per cent of domestic coking coal output in the 2024–25 financial year, according to its annual report. CMPDI, headquartered in Ranchi, serves as Coal India’s technical and consultancy arm, providing research and support for mineral exploration, mining and infrastructure engineering. In FY25, BCCL reported an annual profit of Rs 12.40 billion, compared with a profit after tax of Rs 15.64 billion in the previous year. Coal India has also lined up disinvestments in two other major subsidiaries, Mahanadi Coalfields Limited and South Eastern Coalfields Limited, over the coming months. According to sources, after BCCL and CMPDI, Coal India plans to list Mahanadi Coalfields and South Eastern Coalfields in the next financial year, subject to government approval. BCCL and Mahanadi Coalfields together contribute around 50 per cent of India’s coal production, and Coal India intends to divest 25 per cent stakes in both to further unlock value. Coal India’s other mining subsidiaries include Eastern Coalfields, Central Coalfields, Western Coalfields and Northern Coalfields, all of which are also slated for listing by 2030. BCCL made a strong stock market debut on 19 January, listing at Rs 45.21 on the Bombay Stock Exchange, a premium of 96.56 per cent over the issue price.

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