What You Need to Know About Bharat Coking Coal IPO

The Indian coal and steel sector is witnessing a historic moment. Bharat Coking Coal Limited (BCCL), India's largest domestic coking coal producer with a 58.5% market share, has received SEBI approval for its Initial Public Offering (IPO) on September 19, 2025. This is a game-changing development for investors looking to gain exposure to India's critical energy infrastructure and steel supply chain.

This comprehensive guide covers everything you need to know about the BCCL IPO—from expected timelines and price bands to investor reservation categories and why this PSU listing matters for India's steel ambitions.

What Is Bharat Coking Coal IPO?

Bharat Coking Coal Limited (BCCL) is planning to go public through an Initial Public Offering (IPO) to list its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Quick Facts:

• Issue Size: ₹1,071 crore
• Price Band: ₹21-₹23 per share
• Lot Size: 600 shares
• IPO Opens: January 9, 2026
• IPO Closes: January 13, 2026
• Listing Date: January 16, 2026
• Company: Bharat Coking Coal Ltd (BCCL)

Key Facts:

• Parent Company: Coal India Limited (Maharatna PSU controlling 80% of India's coal output)
• Status: 100% subsidiary of Coal India Limited
• Incorporation Year: 1972
• IPO Type: Mainboard IPO (Book Building Issue)
• IPO Structure: Pure Offer for Sale (OFS) — no fresh shares, only existing share sale
• SEBI Approval Date: September 19, 2025
• Expected Launch: Early January 2026
• Approval Validity: 12 months from September 19, 2025 (Valid until September 19, 2026)

SEBI Approval Status & Timeline

What Happened:

On June 5, 2025, BCCL filed its Draft Red Herring Prospectus (DRHP) with SEBI, BSE, and NSE containing all issue details except the final price.

On September 19, 2025, SEBI approved the DRHP, paving the way for the IPO to proceed.

What's Next (Expected Timeline):

Note: The timeline is tentative and subject to SEBI approval of the final Red Herring Prospectus (RHP) and market conditions.

Expected IPO Details & Price Band

IPO Size & Valuation:

• IPO Size: ₹1071.11 crore
• Total Shares Offered: 46,57,00,000 shares
• Price Band: ₹21-23 per equity share
• Face Value: ₹10 per share

Lot Size:

Share Allocation Breakdown:

Bharat Coking Coal Company Overview

Business Profile:

Bharat Coking Coal Limited is the world's third-largest and India's largest coking coal producer. The company specializes in mining and producing:

• Coking Coal (primary product for steel manufacturing)
• Non-Coking Coal (for power generation)
• Washed Coal (premium product with higher purity)

Operational Footprint:

• Mining Operations: 32 mines across India
  • 25 Opencast mines
  • 3 Underground mines
  • 4 Mixed mines
• Geographic Presence:
  • Jharia, Jharkhand (primary operations)
  • Raniganj, West Bengal
  • Total leasehold area: 288.31 square kilometers

Production Track Record:

• FY 2025: 40.50 million tonnes (highest production)
• FY 2024: 39.11 MT coking coal + 1.99 MT non-coking coal
• FY 2023: Growth from FY2022 baseline
• FY 2022: 30.51 million tonnes

Coking Coal Reserves:

• Proven Reserves: 7,910 million tonnes (as of April 1, 2024)
• Reserve Status: One of the world's largest coking coal reserves
• Production Share: 58.50% of India's total domestic coking coal production in FY2025

Innovation & Strategic Initiatives:

1. Washery Monetization (WDO Model): Leasing idle washeries to private operators
2. Mine Developer and Operator (MDO) Model: Reopening closed underground mines
3. Solar Power Projects: Renewable energy integration for self-consumption and grid injection
4. Digital Transformation: SAP ERP implementation reducing costs by ₹86 lakh in FY25
5. Environmental Commitment: 4.088 MWp rooftop solar, Net Zero goals

Financial Performance & Key Metrics

Restated Consolidated Financials (₹ Crore):

Key Performance Indicators (KPIs):

Financial Highlights:

Dividend & Cash Management:

• Maiden Dividend: ₹44.43 crore paid to parent Coal India on August 5, 2024
• Accumulated Losses Cleared: Company achieved debt-free status
• Income Tax Refund (FY25): ₹104 crore (₹63.87 cr principal + ₹40.12 cr interest)
• Income Tax Paid (FY25): ₹406 crore (highest in last 10 years)

Capital Expenditure:

• CAPEX Achievement: ₹1,100 crore against ₹1,000 crore target (4th consecutive year exceeding target)
• GeM Procurement: ₹4,155.83 crore (136% of ₹3,060 crore target)

IPO Structure: Understanding Offer for Sale

What Is an Offer for Sale (OFS)?

An Offer for Sale means:

• Existing shares from the parent company (Coal India Limited) are being sold
• No new shares are being created by BCCL
• Funds raised go entirely to Coal India, NOT to BCCL's balance sheet
• Equity structure of BCCL remains unchanged (no dilution of ownership)

Investor Reservation Categories Explained

Bid Limits by Investor Category:

Reservation Percentages:

Share Allocation by Investor Type:

• QIB: Not more than 50%
• Retail (RII): Not less than 35%
• NII: Not less than 15%

Shareholder Quota Benefits (Coal India Shareholders)

Who Is Eligible?

Shareholders holding shares in Coal India Limited (CIL) as of the record date 2 January 2026 are eligible for the shareholder quota.

How Much Can They Apply?

• Maximum Bid Limit: ₹2 lakh per shareholder
• Reservation: Separate allocation from the main IPO pool
• Allocation: Based on shareholding percentage in Coal India Limited

Why This Matters:

1. Higher Chances of Allotment: Limited pool of applicants in shareholder category
2. CIL Loyalty Reward: Existing Coal India shareholders get priority
3. Double Benefit: Benefit from BCCL's 58.5% market share in coking coal AND potential dividend history

Important Dates (Expected):

• Record Date: 2 January 2026
• Share Holding Verification: Based on shareholding on record date
• Application Window: Same as general public (IPO opening period)

Lead Managers & IPO Registrar

Book Running Lead Managers (BRLMs):

Two institutional investment banks will manage the IPO:

1. ICICI Securities Limited
   • SEBI Registration: INZ000007237
   • Track Record: Over 300+ IPOs handled
   • Expertise: Major IPO player in India, strong retail distribution
2. IDBI Capital Markets Services Limited
   • SEBI Registration: Merchant banker with strong PSU experience
   • Track Record: Multiple PSU IPO management
   • Expertise: Government of India divestment projects
   • Address: 3rd Floor, Mafatlal Centre, Nariman Point, Mumbai
   • Contact: christina.fernandes@idbicapital.com | +91-22-2289 7529

Registrar to the IPO:

KFIN Technologies Limited

• Role: Handle share allotment, refunds, and listing
• IPO Status Portal: 
• https://ipostatus.kfintech.com/
• Contact Details:
  • Email: bccl.ipo@kfintech.com
• Phone: 04067162222, 04079611000
• Services: Application tracking, allotment status, refund monitoring