Bharat Coking Coal IPO Overview
Dhanbad (Jharkhand)-based coking coal producer raising โน1,071.11 cr (100% OFS by Coal India Limited, no fresh issue). Price: โน21-23. Lot: 600 shares (โน13,800 min investment). GMP: โน16-16.5 (70-72% premium as of Jan 2026). Special quota: 10% for Coal India shareholders.
Funds: 100% OFS – proceeds go to Coal India Limited (parent), not to company. No funds for company growth/expansion.
Lead: IDBI Capital Markets & Securities, ICICI Securities.
Registrar: Kfin Technologies.
Established 1972. Miniratna PSU (2014 status). Wholly-owned subsidiary of Coal India Limited. India’s largest coking coal producer – 58.5% of domestic coking coal output (FY25 per CRISIL). Supplies essential raw material to steel industry (blast furnaces).
Products: Coking coal (primary – steel-making), non-coking coal (power), washed/beneficiated coal. Operates 34 mines (as of Sep 2025): 26 opencast, 4 underground, 4 mixed across legendary Jharia Coalfields (Jharkhand) and Raniganj Coalfields (West Bengal).
Leasehold area: 288.31 sq km. Reserves: ~7,910 million tonnes coking coal (as of Apr 2024) ensuring multi-decade operations.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard (BSE & NSE) |
| IPO Open Date | 09 January 2026 (Thursday) |
| IPO Close Date | 13 January 2026 (Monday) |
| Anchor Investor Bidding | 08 January 2026 (Wednesday) |
| Allotment Date | 14 January 2026 (Tuesday) – Expected |
| Credit to Demat | 15 January 2026 (Wednesday) – Expected |
| Refund Initiation | 15 January 2026 (Wednesday) – Expected |
| Listing Date | 16 January 2026 (Thursday) – Tentative |
| Price Band | โน21 – โน23 per share |
| Face Value | โน10 per share |
| Lot Size | 600 shares (minimum lot) |
| Min Investment (Retail) | โน13,800 (600 shares at upper band โน23) |
| sNII Investment | โน2,07,000 (15 lots / 9,000 shares) minimum |
| bNII Investment | โน10,07,400 (73 lots / 43,800 shares) minimum |
| Issue Size | โน1,071.11 crore total |
| Fresh Issue | NIL – 100% Offer for Sale |
| Offer for Sale (OFS) | โน1,071.11 crore – Coal India Limited selling 46,57,00,000 shares |
| Total Shares Offered | 46,57,00,000 equity shares (46.57 crore shares) |
| Listing | BSE & NSE (Mainboard) |
| Post-Issue Market Cap | ~โน10,700 crore (at upper price band โน23) |
| Grey Market Premium (GMP) | โน16-16.5 (70-72% premium) as of Jan 2026 |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers – Ex Anchor) | 50% |
| NII (Non-Institutional Investors) | 15% |
| Retail Individual Investors | 35% |
| Coal India Shareholders (Special Quota) | Up to 10% reserved |
Special Benefit: Coal India shareholders (even 1 share) get preferential allocation under shareholder category up to 10% reservation.
Selling Shareholders (OFS โน1,071.11 crore)
100% Offer for Sale by Coal India Limited:
- Coal India Limited – Selling 46,57,00,000 equity shares (46.57 crore shares)
- Post-OFS Holding: Coal India to retain 90% stake; divesting 10% to public
Note: This is 100% OFS. ALL proceeds (โน1,071.11 cr) go to Coal India Limited, NOT to Bharat Coking Coal. Company receives ZERO funds. Coal India cashing out part of subsidiary stake while retaining 90% control.
Objects of the Issue (Fund Utilization)
100% OFFER FOR SALE – NO FUNDS TO COMPANY
Since this is entirely an Offer for Sale (OFS), Bharat Coking Coal Limited will NOT receive any proceeds from the IPO.
All โน1,071.11 crore proceeds go to: Coal India Limited (parent company selling shares)
Company receives: โน0 (Zero funds)
Strategic Implications:
- Not a growth IPO: No capital for expansion, equipment, mines, working capital
- Monetization for Coal India: Parent cashing out 10% stake valuing subsidiary at ~โน10,700 cr
- Value unlock: Coal India unlocking value in subsidiary
- Listing benefits: Public listing provides liquidity, transparency, valuation benchmark
- Government mandate: PSU divestment policy driving listing of profitable Coal India subsidiaries
Why investors should consider despite 100% OFS:
- Dividend machine: 30% PAT payout policy = steady dividends (FY25 PAT โน1,240 cr = potential โน372 cr annual dividend = ~3.5% yield at issue price)
- Cash flow business: Established operations, zero debt, mature cash-generative asset
- PSU backing: Government + Coal India ensuring operational/financial stability
- Strategic asset: No large-scale coking coal substitute; essential for steel industry
Note: Pure OFS structure means valuation based on existing operations, reserves, dividend potential – NOT growth capital deployment.
Lead Managers & Registrar
Book Running Lead Managers (BRLMs):
- IDBI Capital Markets & Securities Limited
- ICICI Securities Limited
Registrar:
- Kfin Technologies Limited
- Phone: +91 40 6716 2222 / 1800 309 4001
- Email: [email protected]
- Website: https://ipostatus.kfintech.com/
Promoters & Management
Key Promoters (2 Promoters – Government + Coal India):
Promoters:
- The President of India – Acting through Ministry of Coal, Government of India
- Ultimate owner representing sovereign backing
- Coal India Limited – Holding Company
- Maharatna PSU, world’s largest coal producer
- Pre-OFS: 100% ownership
- Post-OFS: 90% ownership (retaining majority control)
Promoter Holding:
- Pre-IPO: 100% (Coal India Limited)
- Post-IPO: 90% (Coal India Limited after 10% divestment)
Company History:
- Incorporated: 1972 (53 years operations)
- Subsidiary Status: Wholly-owned subsidiary of Coal India Limited since inception
- Miniratna Status: Granted in 2014 (financial/operational autonomy)
- Evolution:
- 1972: Established as government coal company
- 1970s-2000s: Operated legendary Jharia Coalfields (oldest coal mines in India)
- Expanded to Raniganj Coalfields (West Bengal)
- Built network: 34 operational mines (26 opencast, 4 underground, 4 mixed)
- 2014: Granted Miniratna PSU status
- Became India’s largest coking coal producer (58.5% domestic market FY25)
- Accumulated reserves: ~7,910 million tonnes (multi-decade operations)
- Recent challenges: FY25 revenue declined 3% to โน13,803 cr, PAT down 21% to โน1,240 cr
- H1 FY26: Revenue fell to โน5,659 cr from โน6,846 cr (YoY decline)
- 2026: IPO listing under Coal India’s subsidiary monetization strategy
- Workforce: Large PSU workforce (exact count not disclosed; typical coal PSU scale)
Company Contact:
- Registered Office: Koyla Bhawan, Core-2, Premises No. 04-MAR, Action Area-1A, New Town, Rajarhat, Kolkata – 700156, West Bengal, India
- Website: www.bcclweb.in
COMPANY DETAILS
Bharat Coking Coal Limited (BCCL) is India’s largest and most strategic coking coal producer, operating the legendary Jharia and Raniganj coalfields that supply essential raw material to the nation’s steel industry. As a 53-year-old Miniratna PSU and wholly-owned subsidiary of Coal India Limited (world’s largest coal producer), BCCL holds an unmatched position in India’s energy and steel ecosystem – accounting for 58.5% of domestic coking coal production in FY25. The company operates 34 mines across 288 sq km of premium coal-bearing land with estimated reserves of 7,910 million tonnes, ensuring multi-decade operational visibility.
Key Highlights:
- Market Dominance: 58.5% of India’s domestic coking coal output (FY25 per CRISIL) – largest producer
- Strategic Importance: Coking coal essential for steel blast furnaces; no large-scale substitute exists
- Mine Portfolio: 34 operational mines (26 opencast, 4 underground, 4 mixed) in Jharia (Jharkhand) and Raniganj (West Bengal)
- Massive Reserves: ~7,910 million tonnes coking coal reserves (as of Apr 2024) = decades of operations
- Product Mix: Coking coal (primary – steel), non-coking coal (power), washed/beneficiated coal (quality product)
- Zero Debt: Clean balance sheet with no financial leverage (as of Sep 2025)
- Dividend-Focused: 30% PAT payout policy mandated – attractive for income investors
- Government Backing: President of India + Coal India (Maharatna PSU) ownership ensuring stability
Operations
Geographic Presence:
- Jharia Coalfields: Jharkhand (primary operations) – one of India’s oldest and richest coking coal reserves
- Raniganj Coalfields: West Bengal (secondary operations)
- Total Leasehold: 288.31 sq km across both coalfields
Growth Trajectory:
- Revenue Decline (FY24-25): -3% to -2% YoY (โน14,246-14,652 cr to โน13,803-14,401 cr) – negative growth
- PAT Decline (FY24-25): -21% YoY (โน1,564-1,564.46 cr to โน1,240-1,240.19 cr) – profitability pressure
- H1 FY26 Weakness: Revenue โน5,659 cr vs. โน6,846 cr (H1 FY25) – continued decline
- CRITICAL: Recent financial performance weakening – revenue and profit declining for 2 consecutive periods
Company Strengths
- India’s Largest Coking Coal Producer – 58.5% Domestic Market Share (FY25):
- Dominant 58.5% of India’s total domestic coking coal production (FY25 per CRISIL)
- Unmatched scale and strategic importance
- Natural monopoly in coking coal reducing competitive threats
- Massive Reserves – 7,910 Million Tonnes Ensuring Multi-Decade Operations:
- Estimated 7,910 million tonnes coking coal reserves (as of Apr 2024)
- Decades of operational runway providing long-term revenue visibility
- Legendary Jharia and Raniganj coalfields – premium coal-bearing geology
- Dividend Machine – 30% PAT Payout Policy, Potential 3.5% Yield:
- Mandated 30% PAT distribution as dividends
- FY25 PAT โน1,240 cr = potential โน372 cr annual dividend = ~3.5% yield at issue price
- Attractive for income-oriented investors seeking steady cash flows
- Zero Debt – Clean Balance Sheet, Strong Financial Health:
- Completely debt-free operations (as of Sep 2025)
- No financial leverage or interest burden
- Strong return ratios: ROE 20.83%, ROCE 30.13% (FY25)
- Government + Coal India Backing – PSU Stability, Bankruptcy Risk Negligible:
- Owned by President of India + Coal India Limited (Maharatna PSU)
- Government backing ensuring operational continuity
- Policy support, financial stability, minimal solvency risk
- Essential for Steel Industry – No Large-Scale Coking Coal Substitute:
- Coking coal mandatory for blast furnace steel-making
- No viable large-scale alternative technology (electric arc furnaces use scrap, not ore)
- India’s steel production growth directly benefiting BCCL demand
Key Risks & Challenges
- 100% OFS – No Growth Capital, Pure Exit by Coal India:
- Entire โน1,071 cr proceeds go to Coal India, ZERO to company
- No funds for expansion, new mines, equipment, technology
- NOT a growth IPO – pure monetization/value unlock for parent
- Revenue & Profit Declining – FY25 (-3% revenue, -21% PAT), H1 FY26 Weak:
- Revenue declined 3% from โน14,246 cr (FY24) to โน13,803 cr (FY25)
- PAT plummeted 21% from โน1,564 cr to โน1,240 cr (FY24-25)
- H1 FY26: Revenue โน5,659 cr vs. โน6,846 cr (H1 FY25) – continued weakness
- Extreme Customer Concentration – 87% Revenue from Top 10 Customers:
- 87% of revenue from top 10 customers (per analyst)
- Loss of any single major steel client (SAIL, Tata Steel, JSW, others) materially impacting revenue
- No disclosed long-term supply agreements
- Large Contingent Liabilities – โน4,930 Cr Potential Future Obligations:
- Contingent liabilities โน4,930 cr (as of Sep 2025)
- Represents potential future claims, environmental obligations, legal disputes
- If materialized, could significantly impact cash flows and financials
- PSU Legacy Costs – Large Workforce, Inflexible Cost Structure:
- Large government workforce typical of coal PSUs
- Legacy pension obligations, retirement benefits
- Per analyst: “Large PSU workforce and legacy cost structures may limit flexibility”
- Global Decarbonization Risk – Energy Transition Threatening Long-Term Demand:
- Per analyst: “Global decarbonisation and energy transition could impact long-term demand”
- Steel industry exploring hydrogen-based direct reduced iron (DRI) technology (reduces coking coal need)
- Carbon taxes, climate policies pressuring coal-dependent industries
Disclaimer
Bharat Coking Coal Limited (53-year-old Miniratna PSU, India’s largest coking coal producer with 58.5% domestic market share FY25) operates 34 mines across Jharia/Raniganj with 7,910 million tonne reserves, zero debt, 30% dividend payout policy, but faces revenue/profit decline (FY25: -3% revenue to โน13,803 cr, -21% PAT to โน1,240 cr), 100% OFS giving ZERO funds to company, 87% customer concentration, โน4,930 cr contingent liabilities, PSU legacy costs, and long-term decarbonization risks. Suitable for dividend-focused investors, not growth seekers. GMP โน16-16.5 (70% premium). Mainboard listing BSE/NSE.
