Overview
Bharat Coking Coal Ltd (BCCL) and Central Mine Planning & Design Institute Ltd (CMPDIL), both key subsidiaries of Coal India Ltd, are gearing up for their IPOs expected to launch before the end of December 2025. These IPOs are part of the government’s accelerated divestment plan for state-owned enterprises. Both listings will be fully Offer for Sale (OFS) issues, with Coal India offloading part of its stake to unlock value and broaden market participation. The exact IPO dates and floor price discussions are in advanced stages.
Offer Snapshot
- Bharat Coking Coal IPO: OFS of up to 46.57 crore equity shares (face value ₹10 each)
- Central Mine Planning & Design Institute IPO: OFS with circa 7.14 crore shares on offer
- Both IPOs expected to be launched in one or multiple tranches rather than a single bulk sale
- Pricing and final offer size discussions ongoing with market experts
- Registrars: KFin Technologies Ltd managing allotment and refunds
- Book Running Lead Managers: BCCL – ICICI Securities, IDBI Capital; CMPDIL – SBI Capital Markets, IDBI Capital
- Listed on NSE and BSE post-IPO
Financials
- Bharat Coking Coal Ltd is India’s largest coking coal producer, accounting for 58.5% of national coking coal production in FY25, with reserves of 7.91 billion tonnes
- CMPDIL is India’s premier coal and mineral consultancy with strong financials, boasting a 31.72% PAT margin and 48.6% ROCE as of FY25
- Both subsidiaries contribute significantly to India’s energy ecosystem—BCCL in mining and supply; CMPDIL in planning and consultancy services
- BCCL operates 32 active mines (opencast, underground, and mixed), supporting key sectors like steel, power, and infrastructure
Business Highlights
- Strategic listing supports India’s Atma-Nirbhar Bharat mission by boosting domestic coal production and consultancy capabilities
- Government expects partial stake sale to maintain operational control while improving corporate governance and transparency through public listing
- CMPDIL’s extensive expertise in geological exploration, mine planning, infrastructure engineering, and environmental management complements BCCL’s mining prowess.
- The IPOs attract interest from institutional investors due to their market dominance and critical role in India’s coal industry
Use of Proceeds
- Being OFS offerings, no fresh capital proceeds to companies; funds go to the selling shareholder, Coal India Ltd
- Proceeds support government’s strategic disinvestment and fiscal consolidation goals
- Listing expected to enhance market valuation and investor confidence in PSU-led sectors
Risks
- Market conditions and valuation sensitivity could impact subscription if investor sentiment dips
- Regulatory or environmental changes affecting coal mining operations may impact performance
- Any unforeseen labor or infrastructure challenges could disrupt production or consultancy projects
- Price fluctuations in global and domestic coal markets influence profitability and outlook
What to Watch Next
- Finalization of IPO floor price and issue size for both BCCL and CMPDIL
- Subscription dates announcement and investor interest levels during launch window
- Listing performance and valuations post-December 2025 debut on NSE and BSE
- Government policy updates around coal sector reforms or divestment timelines
FAQs
Q1: When will Bharat Coking Coal Ltd and CMPDIL IPOs open?
Expected before December 2025; exact dates pending final approval and filings.
Q2: What is the size and nature of these IPOs?
Both are fully Offer for Sale (OFS) issues with no fresh share issuance. BCCL may offer up to 46.57 crore shares; CMPDIL around 7.14 crore shares.
Q3: What is the role of these companies?
BCCL mines and supplies coking coal, vital for steel and power sectors; CMPDIL provides specialized consultancy for exploration, planning, and environmental management.
Q4: Who are the lead managers and registrars?
Registrars: KFin Technologies Ltd; Lead Managers include ICICI Securities, SBI Capital Markets, and IDBI Capital.
Q5: Why are these IPOs significant?
They mark key government efforts to unlock value, improve governance in PSU subsidiaries, and support India’s energy and industrial growth initiatives.
It’s great to see BCCL entering the IPO market—especially considering its dominant share in India’s coking coal production. This could provide investors with a unique opportunity to invest in a crucial part of India’s energy infrastructure.