Government company BCCL will launch IPO soon: Preparation to raise ₹1,300 crore by selling 10% stake; Issue may open in 2 weeks

The year 2026 may begin with the entry of a big government company in the stock market. Coal India’s subsidiary company ‘Bharat Coking Coal Limited’ (BCCL) is preparing to launch its Initial Public Offering (IPO). According to media reports, this issue may be listed in the market within the next two weeks.

BCCL is a subsidiary of Coal India, a Maharatna public sector company. The objective of the government and the company is to unlock its value through the stock market. If this listing happens on time, it will be the first big IPO from the public sector in the new year.

There will be a complete offer for sale (OFS) issue.

According to reports, the size of BCCL’s IPO could be around ₹1,300 crore. Accordingly, the valuation of the company before listing is being estimated at around ₹ 13,000 crore. This issue will be completely Offer for Sale (OFS). This means that the company will not issue new shares, but will instead sell about 10% of its stake (about 46.57 crore equity shares) in Coal India BCCL.

Since this is not a fresh issue, the entire money received from the IPO will not go to BCCL but to the parent company Coal India. The purpose of this stake sale is to accurately assess the value of the company through market participation.

BCCL’s mines are mainly in Jharia Coalfields in Jharkhand.

Independent directors are yet to be appointed

There is still a small hurdle in the way of this IPO. Six independent directors are yet to be appointed on the board of BCCL. The company can file its final Red Herring Prospectus (RHP) only when these positions are filled.

According to sources, the Coal Ministry has put the matter before Cabinet Secretary TV Somanathan and has demanded to expedite the appointments, so that the listing process remains on track. SEBI had approved the draft papers of BCCL in September last year itself. ICICI Securities and IDBI Capital have been made lead managers for this issue.

BCCL is a major company in the steel industry.

Bharat Coking Coal Limited (BCCL) is one of the most important companies producing coking coal in the country. Coking coal is mainly used as a raw material in making steel. Apart from this, the company also produces non-coking coal and washed coal, which is used in the power sector.

The company was incorporated in 1972. Its mines are mainly located in Jharia in Jharkhand and Raniganj Coalfields in West Bengal, which are counted among the richest coal fields of India.

Coal production increased by 33% in 3 years

BCCL has increased its production in the last few years. The company’s coal production was 30.51 million tonnes in FY 2022, which will increase to 40.50 million tonnes in FY 2025. That means a growth of about 33% was recorded in three years.

If we look at the results for the financial year 2025 (till March), the company’s revenue was around ₹ 14,000 crore. The company’s profit stood at ₹1,240 crore, while its net worth increased to ₹6,551 crore from ₹3,791 crore two years ago. The most important thing is that the company has no debt.

80% share in coal production

Coal India accounts for more than 80% of the country’s total coal production. The listing of BCCL is part of Coal India’s strategy under which it wants to unlock the value of its subsidiary companies.

Along with this, Coal India is also working on its expansion. The company is setting up a 1,600 MW pithead power project in Odisha at an estimated cost of ₹16,000 crore. Apart from this, work on a power project is also going on in 50:50 joint venture with Damodar Valley Corporation (DVC).