Summary of this article
Coal India will divest 465.7 million shares in Bharat Coking Coal via an offer for sale opening January 9.
The parent company expects to bag a profit of Rs 605.11 crore, achieving a 130 per cent return.
With a price band of Rs 21 to 23, the IPO aims to raise Rs 1,071.11 crore total.
BCCL IPO: The first mainboard initial public offering (IPO) of the new calendar year, the Bharat Coking Coal IPO is set to open for subscription on January 9, 2026. The public issue consists entirely of an offer-for-sale (OFS). Notably, the stake sale will be done by Coal India, the parent company of Bharat Coking Coal (BCCL).
Shares of Coal India have been in focus following the approval of Bharat Coking Coal’s public issue. The state-owned coal producer is set to gain from the divestment of its stake in Bharat Coking Coal.
BCCL IPO: Coal India Profit
As part of the OFS, Coal India will sell 465.70 million shares or 10 per cent of its stake in the public issue to raise as much as Rs 1,071.11 crore. According to the company’s Red Herring Prospectus (RHP) the Coal India’s weighted average cost of acquisition of BCCL shares stands at Rs 10 per share. Thus its total cost of acquisition for the shares totals to Rs 466 crore. Thus, Coal India will bag a profit of Rs 605.11 crore from the divestment of its stake in BCC.
Bharat Coking Coal IPO Details
Bharat Coking Coal has set the price band for its public issue between Rs 21 and Rs 23 apiece. The coking coal producer’s public issue will remain open for subscription from January 9-13, 2026. The share allotment status will be declared on January 14 and unsuccessful bidders will be issued refunds on January 15. Successful bidders will also receive the shares in their demat account the same day. The shares will be listed on the BSE and NSE on January 16.
Bharat Coking Coal IPO GMP
BCCL shares are garnering a strong interest in the grey market. The grey market premium (GMP) for Bharat Coking Coal’s shares is ranging between Rs 11 and Rs 11.60. On the basis of the GMP, the shares are expected to list at Rs 34.60, with a potential listing day gain of 50.43 per cent per share.
Bharat Coking Coal IPO: Investment Categories
BCCL has set aside more than 50 per cent of the issue size for qualified institutional buyers (QIBs). On the other hand, the quota for retail investors and non-institutional investors (NIIs) is 35 per cent and 15 per cent, respectively. The company has also made a reservation for Coal India shareholders.
Shareholders of Coal India who held the shares in their demat accounts on the date of the filing of the RHP are eligible to apply in the shareholder quota. Notably, applications can be made by eligible shareholders in both the shareholder category and the retail or NII category simultaneously.
Bharat Coking Coal IPO: Registrar
The book-running lead manager for the state-owned company is IDBI Capital Services and the registrar for the issue is Kfin Technologies.
About BCCL
Bharat Coking Coal is engaged in the production and sale of coking coal in India. The company has been conferred with the ‘Mini Ratna’ status. The company is the largest coking coal producer domestically, making up 58.50 per cent of domestic production in FY25. The company’s operations are concentrated in Jharia and Raniganj coalfields. The public issue of the company is aimed at unlocking value for Coal India and is a part of the company’s larger plan to monetise its subsidiaries. The board of the company has also approved the public issues of its other arms such as Mahanadi Coalfields and South Eastern Coalfields.
