CIL subsidiary Bharat Coking Coal to launch ₹1,069 crore IPO on Friday

The company targets steel-led growth, import substitution

Coal India subsidiary Bharat Coking Coal Ltd (BCCL) plans to launch its initial public offering (IPO) on Friday to raise ₹1,069 crore through a 100 per cent offer for sale (OFS).

 

It is looking to position itself as a key supplier to India’s steel industry as the country seeks to lower dependence on imported coking coal.

 

The IPO, to be priced in a band of ₹21-23 per share, will close for public subscription on January 13, with the anchor book opening on Thursday.

 

The shares are scheduled to list on the BSE and NSE on January 16.

 

According to the issue structure, up to 50 per cent of the offer has been reserved for qualified institutional buyers (QIBs). At least 35 per cent is for retail investors and around 15 per cent for non-institutional investors.

 

The proceeds from the IPO will accrue to the parent company, Coal India.

 

During a media interaction on Monday, the management clarified that the absence of a fresh issue would not affect the company’s growth plans. This is because capital expenditure would continue to be funded through internal accruals.

 

Manoj Kumar Agarwal, chairman-cum-managing director, Sanjay Kumar Singh, director, technical, of BCCL, and Mukesh Agrawal, director (finance) of Coal India, participated in the media interaction.

 

BCCL is India’s largest producer of coking coal, accounting for about 58.5 per cent of domestic output, and is the only producer of prime coking coal in India.

 

Coking coal is a critical input for steelmaking, and India currently imports a large share of its requirement, primarily from Australia.

 

The company produced 40.5 million tonnes (MT) of coal last financial year (2024-25). The management plans to raise the production to 55 MT by 2029-30, supported by mine expansion and operational improvements. The strategy includes expansion of coal washery capacity, which enables the supply of higher quality coal to steel producers.

 

BCCL’s washery capacity currently stands at 13.65 MT per annum and the company is targeting to double this to 27-28 MT by 2030.

 

As a result, washed coking coal output is expected to rise to 9-10 MT, enabling substitution of a similar volume of imports, the company said. India currently imports around 57-62 MT of coking coal annually.

 

The company also outlined a gradual shift in its business mix, reducing reliance on the power sector while increasing supplies to steel and other non-regulated sectors.

 

At present, around three-fourths of its coal supplies are directed to the power sector, with limited volumes of washed coal supplied directly to steel producers.

 

By 2029-30, power-sector supplies are expected to be capped at around 29 MT, while supplies to the steel sector, including washed coking coal, are expected to rise sharply. Volumes to non-regulated sectors such as steel, cement and fertilisers are also projected to increase.

 

On shareholder returns, the company said it expects to generate over ₹2,000 crore in annual profit every year in the coming years, with around ₹2,400 crore available annually for dividend distribution and capital expenditure.

 

For FY25, BCCL reported revenue of ₹13,802 crore and net profit stood at ₹1,240 crore, down 20 per cent from the previous year.

 

On pricing, BCCL said its coking coal is priced at about 62.5 per cent of the free on board (FOB) price of Australian semi-hard coking coal. This offers a cost advantage to domestic steelmakers. 

Hindustan Labs files IPO papers with Sebi  

Generic drug maker Hindustan Laboratories has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The company’s maiden public offering comprises a fresh issue of 5 million shares along with an offer-for-sale (OFS) of 9.1  million shares by the promoter, according to the draft red herring prospectus. The firm proposes to utilise IPO proceeds for funding the working capital requirements and general corporate purposes. 

Hindustan Laboratories is an Indian pharmaceutical company primarily engaged in the large-scale manufacturing and supply of generic medicines to government institutions under a business-to-government (B2G) framework. 

The company supplied its products across India to 27 states and Union Territories during the six months ended September 30, 2025.