BCCL files IPO papers with Sebi, CIL to offload 465.7 million shares

Coal India Ltd (CIL) subsidiary Bharat Coking Coal Ltd (BCCL) has submitted draft papers to the Securities and Exchange Board of India (Sebi) for its upcoming initial public offering (IPO).

 

The IPO will be a pure offer for sale (OFS) with no issuance of new shares. CIL plans to offload up to 465.7 million equity shares through the offering.

 

“The DRHP filing pertains to the proposed initial public offering of BCCL comprising an offer for sale of up to 465,700,000 equity shares by Coal India Ltd, which remains subject to receipt of applicable approvals, market conditions, and other relevant considerations,” BCCL stated.

 

For the financial year FY25, BCCL reported a net profit of Rs 1,240.19 crore, down 20.7 per cent from Rs 1,564.46 crore in FY24. Revenue from operations in FY25 stood at Rs 13,998.45 crore, a marginal decline of 0.33 per cent from Rs 14,045.34 crore in FY24.

 

Up to 60 per cent of the Qualified Institutional Buyers (QIB) portion may be allocated to Anchor Investors on a discretionary basis, in consultation with the book-running lead managers (BRLMs), in accordance with Sebi ICDR regulations. 

 

“One-third of the Anchor Investor portion shall be reserved for domestic mutual funds, subject to valid bids being received from domestic mutual funds at or above the Anchor Investor Allocation Price,” the draft red herring prospectus (DRHP) stated. No green shoe option is contemplated under the offer.

 

Currently, Coal India holds the entirety of BCCL’s paid-up equity share capital, comprising 4,657,000,000 equity shares of Rs 10 each.

 

BCCL noted in its DRHP that “coking coal prices are on a correction trajectory as supply-side conditions in Australia are expected to ease with mine expansions and new approvals, while demand-side sentiments remain steady, with India being the major influencer.”

 

BCCL is engaged in the mining and supply of high-grade coking coal, a critical input for steel production. Revenue from operations has been primarily driven by raw coking coal, contributing approximately 76.07 per cent in FY25, 75.40 per cent in FY24, and 76.07 per cent in FY23.

 

Separately, CIL announced that its director (marketing), Mukesh Choudhary, has been given additional charge of director (business development). The appointment will take effect from June 1, 2025, for an initial term of three months, or until a permanent appointment is made, or until further notice — whichever is earlier — according to a regulatory filing.