Coal India's Lucrative IPO for Bharat Coking Coal: A Strategic Divestment

Coal India Ltd is poised to gain over Rs 600 crore by divesting a 10% stake in Bharat Coking Coal Ltd through an IPO. The listing is part of a broader strategy to monetize Coal India’s subsidiaries like Mahanadi Coalfields and South Eastern Coalfields, with shares set to list in January 2026.

State-owned miner Coal India Ltd is preparing for a major financial win by divesting a 10% stake in its subsidiary Bharat Coking Coal Ltd (BCCL) through an initial public offering (IPO). The transaction is expected to result in a profit surpassing Rs 600 crore, according to the offer document.

With the IPO price band set at Rs 21-23 per share, Coal India is projected to earn Rs 12-13 per share. The company anticipates receiving approximately Rs 1,071 crore at the upper price band, resulting in a net gain of nearly Rs 605 crore and a return of about 130% on the original investment.

This move marks BCCL's first listing amid Coal India's plan to divest major subsidiaries, including Mahanadi Coalfields Ltd. The IPO opens on January 9 and closes on January 13, with shares listing on January 16, 2026. The entire proceeds from the IPO will benefit Coal India, and BCCL shares are already gaining traction in the grey market.

(With inputs from agencies.)