Bharat Coking Coal Limited (BCCL), a wholly owned subsidiary of Coal India, is set to launch its initial public offering (IPO) on January 9, 2026.
This marks the first IPO of the year.
The IPO will be an offer-for-sale (OFS) of 47.47 crore equity shares by Coal India.
Bids from anchor investors will open on January 8, while the public issue will remain open till January 13.
The company is expected to announce key details like price band, lot size, and issue structure on January 5.
Why This IPO Matters
This IPO is part of the government’s disinvestment plan in the coal sector.
The aim is to unlock value in Coal India’s subsidiaries and bring more transparency through market participation.
BCCL primarily produces coking coal, which is used in steel manufacturing, while another Coal India subsidiary, CMPDIL, acts as the technical and planning arm.
In 2025, CMPDIL also filed for an IPO via OFS.
The IPO comes at a time when India’s primary market is strong.
In 2025, companies raised around Rs 1.76 lakh crore through IPOs, supported by strong domestic liquidity and positive investor sentiment.
Key Risks to Consider Before Investing
According to the Draft Red Herring Prospectus (DRHP), investors should be aware of the following operational and financial risks:
Coal Quality: BCCL’s coking coal has higher ash content, which limits direct use in steel plants. Much of it is diverted to power plants.
Mining Challenges: Many coal reserves are deep-seated and located in densely populated areas of Jharkhand, making mining complex.
Mine Fires: Ongoing mine fires and spontaneous heating in parts of the Jharia coalfields can damage reserves and reduce productivity.
Technology Limitations: Lack of advanced technology restricts safe extraction from fire-affected zones.
Regulatory Risks: Compliance with environmental norms and sustainability regulations can increase costs or limit extraction.
Pending Tax Disputes: Unresolved tax issues worth Rs 1,826.25 crore remain a concern.
What Investors Should Watch
FinancialExpress.com will provide all updates on BCCL’s IPO, including:
Price band and valuation
Grey Market Premium (GMP)
Allotment and listing dates
This IPO offers investors an opportunity to participate in one of India’s largest coal producers, but it’s important to consider the operational, financial, and regulatory risks before subscribing.