June 1, 2025
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Coal India Sets Stage for Dual IPO Play, Eyes Market Debut for BCCL
Coal India Ltd (CIL) is gearing up for a major shake-up in its corporate structure, having filed the Draft Red Herring Prospectus (DRHP) for the IPO of its wholly owned subsidiary, Bharat Coking Coal Ltd (BCCL). The filing, submitted to market regulator SEBI and stock exchanges NSE and BSE, marks a key step in unlocking value from the state-owned mining giant’s vast empire.
IPO Snapshot: Over 46 Crore Shares on Offer
The proposed public offering will be an Offer for Sale (OFS) of up to 46.57 crore equity shares, all offloaded by the parent company. There will be no fresh issue of shares, meaning the IPO proceeds will flow directly to Coal India Ltd. Specifics like the price band and lot size will be disclosed closer to the issue date, after final consultation with the book-running lead managers.
Twin Track Strategy: CMPDI IPO Also in the Works
This move comes hot on the heels of a similar IPO plan for another Coal India subsidiary—Central Mine Planning & Design Institute Ltd (CMPDI). Just last week, CMPDI filed its own DRHP for an OFS of 7.14 crore shares, also entirely divested by CIL.
If greenlit, both BCCL and CMPDI will be listed on the BSE and NSE, expanding their market visibility and potentially granting them greater operational independence.
Investor Angle: Gateway to India’s Energy & Consultancy Sectors
These back-to-back IPOs open the door for investors to tap into India’s energy infrastructure and mineral consultancy services, sectors expected to gain momentum in the country’s push for resource security and sustainable industrial growth.
Coal India’s strategic divestment signals a broader trend of monetizing public sector assets while offering the market a chance to participate in niche, high-potential verticals of the mining and energy landscape.
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