The IPO market may see an early high-profile entry in 2026. The company in focus here is Bharat Coking Coal (BCCL). It is a subsidiary of Coal India, and is reportedly preparing to hit Dalal Street soon. Though there is no confirmation or official announcement from the company, the buzz indicates that the IPO may see an early 2026 launch.
Following reports of IPO buzz around Coal India’s subsidiary, Bharat Coking Coal, shares of Coal India jumped over 3% in intraday trade.
Now, many might be thinking of what makes Bharat Coking Coal IPO significant? Let’s take a look at the key detail of this upcoming IPO and know more about the issue-
Bharat Coking Coal IPO: Coal India subsidiary prepares to go public
Bharat Coking Coal is a Maharatna public sector company. It is a subsidiary of Coal India. The IPO is expected to be an offer-for-sale. Coal India plans to sell around 10% of its stake in BCCL. The issue size is estimated at about Rs 1,300 crore.
Since no fresh shares are being issued, the entire proceeds from the IPO will go to Coal India, and not BCCL.
Bharat Coking Coal IPO: Ownership and control
Now coming to the ownership and control, Coal India is the sole promoter of BCCL and will also act as the Promoter Selling Shareholder for the IPO.
It holds the entirety of BCCL’s equity. This stands at approximately 4.66 billion shares.
The President of India, acting through the Ministry of Coal and other members of the promoter group, does not hold direct equity in BCCL as of the Draft Red Herring Prospectus date.
Moreover, even after the IPO, the Government will continue to control major decisions such as board appointments, revenue budgets, capital expenditure, and dividend policies.
Bharat Coking Coal IPO: Investor categories and allocation
The IPO is expected to include allocations for Qualified Institutional Buyers (QIBs). It is capped at 50% of the offer.
Of this portion, up to 60% will be allocated to anchor investors on a discretionary basis, with one-third of the anchor portion reserved for domestic mutual funds.
Furthermore, the floor price, offer price, bid lot size, and anchor investor pricing will be determined in consultation with the Book Running Lead Managers (BRLMs) during the book-building process.
Bharat Coking Coal IPO: Key players of the issue
IDBI Capital Markets & Securities and ICICI Securities are acting as the Book Running Lead Managers for the issue.
KFIN Technologies is appointed as the registrar, handling share allotments and investor records.
Bharat Coking Coal IPO: Business overview of Bharat Coking Coal
Primarily, Bharat Coking Coal is engaged in the mining and supply of coking coal, non-coking coal, and washed coals. These are raw materials for the steel and power sectors.
Furthermore, the company’s operations are concentrated in the Jharia coalfield in Jharkhand and also the Raniganj coalfield in West Bengal.
Coking coal, which makes up around 96% of BCCL’s production as of FY25, forms the backbone of steel production processes.
