Coal India Ltd (CIL) has filed the Draft Red Herring Prospectus (DRHP) for a proposed initial public offering (IPO) of its wholly owned subsidiary Bharat Coking Coal Ltd (BCCL) with market regulator SEBI, along with stock exchanges NSE and BSE.
Offer for sale of over 46 crore shares
The proposed IPO will consist entirely of an offer for sale (OFS) of up to 46.57 crore equity shares by Coal India. No fresh equity will be issued, meaning all proceeds from the sale will go to the parent company. Details such as the price band and bidding lot size will be announced later, after consultation with the book-running lead managers.
CMPDI’s IPO filing
This development comes just a week after another Coal India unit, Central Mine Planning & Design Institute Limited (CMPDIL), filed its own DRHP for a similar IPO structure. CMPDI’s offering will involve the sale of 7.14 crore shares, again entirely through OFS by Coal India.
If approved, both CMPDI and BCCL will be listed on the BSE and NSE, enhancing visibility and potentially improving operational autonomy.
The IPOs of these subsidiaries also offer investors exposure to India’s growing energy and mineral consultancy sectors.