Bharat Coking Coal IPO: Coking Coal Producing PSU’s Public Issue Set To Open On Jan 9 - Should You Apply?

Bharat Coking Coal’s initial public offering (IPO) is scheduled to open for subscription this week on January 9. The three-day bidding window for the public issue is expected to close on January 13. Here’s a look at some key details of the first mainboard public issue of the new calendar year:

Bharat Coking Coal IPO: Offer Size

Bharat Coking Coal’s issue consists of an offer-for-sale of 465.7 million shares. The price band for Bharat Coking Coal IPO has not been announced yet. The book running lead manager for the coking coal producer’s issue is IDBI Capital Markets Services, and the registrar for the issue is Kfin Technologies.

Bharat Coking Coal IPO: Shareholders Quota

In the upcoming public issue, the company has made a reservation for existing shareholders of the parent company, Coal India Limited (CIL). According to the Red Herring Prospectus (RHP) 10 per cent of the total issue size has been reserved for the shareholder category.

To be eligible to apply under the shareholder quota, investors need to be an existing shareholder of Coal India Limited (CIL) as of January 2, 2026, the date on which the RHP was filed. The shareholder quota enables eligible shareholders to apply in both the retail and the shareholder categories, increasing their chances of allotment.

Bharat Coking Coal IPO: Subscription Window, Allotment Date, Listing Date

Following the closure of the bidding window on January 13, the basis of allotment for Bharat Coking Coal IPO is expected to be determined on January 14. After the share allotment status of Bharat Coking Coal IPO is decided, successful bidders will receive shares of the company in their demat accounts on January 15. Bharat Coking Coal shares are slated to list on the BSE and NSE. Shares of Bharat Coking Coal will tentatively list on January 16.

Bharat Coking Coal IPO: Key Financials

In the quarter ended September 30, 2025, Bharat Coking Coal posted a total income of Rs 6,311.51 crore, the company’s profit-after-tax stood at Rs 123.88 crore, and net worth stood at Rs 5,830.89 crore.

Bharat Coking Coal’s total income decreased by nearly 2 per cent to Rs 14,401.63 crore in the financial year ended March 31, 2025, compared to Rs 14,652.53 crore in the preceding fiscal. The company posted a net profit of Rs 1240.19 crore in FY 2024-25, decreasing by over 20 per cent compared to a net profit of Rs 1564.46 crore in the preceding fiscal.

Bharat Coking Coal: Business Model

Bharat Coking Coal claims to be the largest coking coal producer in India in Fiscal 2025, accounting for 58.50 per cent of the domestic coking coal production in Fiscal 2025. The company’s primary product is coking coal. However, the company also produces various grades of non-coking coal and washed coal. The company is a wholly-owned subsidiary of Coal India Limited and was awarded the Mini Ratna status in 2014. The company’s primary source of revenue is from its sale of coking coal to heavy industries such as steel production and power generation.

Bharat Coking Coal: Competitors

Bharat Coking Coal mentioned in its RHP that its only major competitor in India within the coking coal production business is Central Coalfields Ltd (CCL). While other companies, such as SAIL and Tata Steel, also produce coking coal, they do not sell it and instead use it for their own captive purposes. Another Coal India subsidiary, Mahanadi Coalfields, is a competitor of the company within its non-coking coal business.

Bharat Coking Coal IPO: Should You Apply?

Here’s a look at the strengths and risks mentioned by the coking coal producer, which investors must consider before applying for the public issue:

Bharat Coking Coal: Key Risks

Here’s a look at some of the key risks related to Bharat Coking Coal’s business according to the company’s RHP:

• The PSU claims that its mines and washeries are concentrated in Jharia, Jharkhand and Raniganj, West Bengal. Thus, the eventual exhaustion of coal reserves in these areas or the inability to successfully exploit existing reserves may adversely affect the company’s business.

• A significant portion of Bharat Coking Coal’s revenues is derived from the production of raw coking coal, which accounted for 77.20 per cent and 74.13 per cent of the company’s revenue from operations in the six months period ended September 30, 2025 and the full fiscal 2024, respectively. Any decline in demand for raw coking coal could have an adverse impact on the company’s business and results of operations.

• The company depends on a limited number of vendors to provide contractual services, and any disruptions in their supply of services could adversely affect its business.

Bharat Coking Coal: Key Strengths

Here’s a look at some of the key strengths of Bharat Coking Coal’s according to the company’s RHP:

• Bharat Coking Coal is the largest coking coal producer in India with access to large reserves. As of March 31, 2025, India’s total coal resource is estimated to be 389.4 billion metric tonnes, with coking coal resources amounting to 36.8 billion tonnes.

• The PSU has strategically located mines with large washeries located in the Jharia and Raniganj coalfields. The company’s strategically located mines and large washeries can enhance operational efficiency and reduce costs.

• Bharat Coking Coal claims that it is well-positioned to capitalise on the demand for coking coal in India. The demand for coking coal is expected to rise, as per the RHP, led by the growth of the steel and power industries and the company claims it is well positioned to capitalise on this demand on account of its large resource base.

Bharat Coking Coal IPO: Objective

Bharat Coking Coal will not receive any proceeds from the public issue, and all the offer proceeds will go to the promoter selling shareholder after deduction of public issue-related expenses and relevant taxes.