Big PSU listing expected in January 2026: Coal Indias subsidiary to launch IPO
Bharat Coking Coal (BCCL), a Coal India subsidiary, is set for a major IPO in early 2026, becoming potentially the New Year's first significant PSU listing. Valued around Rs 13,000 crore, this OFS will see Coal India sell 10% stake. As India's demand for steel and power soars, BCCL's debt-free status and growing production offer a prime long-term investment in the vital coal sector.
New Delhi: India's coal sector is once again in the limelight. At the beginning of the year 2026, a big government name is set to hit the stock market. Bharat Coking Coal (BCCL), a wholly owned company of Coal India, is likely to bring its IPO in the next two weeks. If that happens, it could be the first major PSU issue of the New Year. This IPO is coming at a time when the demand for steel, power and infrastructure in the country is increasing.
Coal remains an important part of India's energy needs. Both the government and Coal India are working on a strategy to unlock the value of their subsidiary companies. In this context, the arrival of Bharat Coking Coal in the stock market is considered a big opportunity for investors, especially for those who like long-term investments in strong government companies.
Bharat Coking Coal IPO
The IPO of Bharat Coking Coal can be worth around Rs 1300 crore. This will be a complete Offer For Sale (OFS). That means no new shares will be issued in it. Coal India will sell about 10 percent of its stake, which is equivalent to about 46.57 crore shares. All the money received from this IPO will go to Coal India, not the company.
Through this issue, the estimated value of Bharat Coking Coal is estimated to be around Rs 13,000 crore. The price band, lot size and other details will be decided closer to the launch. The book running lead manager of this IPO will be ICICI Securities and IDBI Capital Markets and Securities, while KFin Technologies will play the role of registrar. Sebi has already approved DRHP in September.
BCCL's Financial Strength & Production Growth
Bharat Coking Coal is one of the most important coking coal production companies in India. Coking coal is mainly used to make steel. Apart from this, the company also produces non-coking coal and washed coal, which is used in the power sector. The company's mines are mainly in Jharia in Jharkhand and Raniganj in West Bengal.
The company's production has increased steadily in the last few years-
Production in FY22:30.51 million tonnes
Production in FY25:40.50 million tonnes
An increase of about 33% was recorded in three years. In FY24, the company touched its highest ever production level.
As of March 2025, the company's operational revenue was around Rs 14000 crore. The profit for the year was Rs 1240 crore. The biggest thing is that Bharat Coking Coal is completely debt free. The company's net worth has increased to Rs 6551 crore in two years. Coal India accounts for more than 80 percent of the country's total domestic coal production. It works through seven coal production subsidiaries. Bharat Coking Coal's IPO is part of this strategy to bring out the value of the subsidiary.
Coal India is also working on coal gasification, pithead power plants and foreign mineral projects. A 1600 MW power project in Odisha and a joint venture with Damodar Valley Corporation are also steps in this direction. Amidst all these changes, Bharat Coking Coal's IPO could be one of the most talked about listings of 2026.
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