Bharat Coking Coal, a wholly owned subsidiary of Coal India, is set to launch its initial public offering (IPO) on January 9, marking the first public issue of 2026. As per the red herring prospectus (RHP), the IPO will be an offer for sale (OFS) of 47.47 crore equity shares by Coal India. The issue will be open till January 13, whereas bids from anchor investors are slated for January 8. The company is likely to announce details like price band, issue structure, and lot size on January 5.
Bharat Coking Coal IPO: Key IPO details on January 5
The proposed listing of Bharat Coking Coal or BCCL is part of the government’s wider disinvestment plan in the coal sector. The aim is to unlock value in Coal India’s subsidiaries and to enhance transparency through market participation. In 2025, another Coal India arm, Central Mine Planning and Design Institute (CMPDIL), also filed draft documents for an IPO through the OFS route, as noted by PTI.
BCCL is mainly involved in coking coal production, whereas CMPDIL runs as Coal India’s technical and planning arm. This IPO comes at a time when India’s primary market has witnessed a strong boost. The companies raised around Rs 1.76 crore through IPOs in 2025, backed by strong domestic liquidity and positive investor sentiment.
Bharat Coking Coal IPO: Operational and mining risks
According to the Bharat Coking Coal Draft Red Herring Prospectus (DRHP), investors must pay attention to key business risks before considering the issue for subscripton. These include-
1. One major concern is the quality of coal, as BCCL’s cooking coal contains higher ash, which restricts its direct utilisation in the steel industry. Therefore, a significant portion gets diverted to power plants.
2. Another challenge is linked to the location of the coal reserves. Many deposits are deep-seated and found in the densely populated areas of Jharkhand. Thus the mining process gets complex and is operationally demanding.
3. The report further points out the ongoing risks from mine fires and spontaneous heating in the parts of the Jharia coalfields. This factor can damage reserves and reduce productivity.
4. The lack of advanced technology for safely extracting coal from fire-affected zones continues to be a major constraint.
5. The company also faces risks from a tightening regulatory environment. Factors like sustainability norms and environmental clearances increase compliance costs or restrict extraction activity in some areas.
6. The filing also mentions pending tax-related disputes adding up to Rs 1,826.25 crore, which continue to be unresolved.
FinancialExpress.com will be bringing you all the latest updates on the IPO price band, GMP, valuation, allotment and listing dates. Keep watching the space for the latest updates.
