Metro India News | NEW DELHI

Coal India arm Bharat Coking Coal Ltd (BCCL) on Monday announced a price band of Rs 21 to Rs 23 per share for its Rs 1,071-crore initial public offering (IPO), which will be the first public issue of 2026. At the upper end of the band, the company is valued at over Rs 10,700 crore.

The IPO will open for subscription on January 9 and close on January 13, while anchor investor bidding is scheduled for January 8. BCCL is expected to make its stock market debut on January 16. Market participants are closely tracking the issue as an early indicator of investor sentiment towards public sector undertakings (PSUs) in the new year.

According to the red herring prospectus, the entire issue comprises an offer for sale of 46.57 crore equity shares by parent Coal India Ltd. At the top end of the price band, the offer size stands at Rs 1,071.11 crore. The issue allocation includes 50 per cent for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors.

The proposed listing forms part of the government’s broader divestment strategy aimed at unlocking value in Coal India’s subsidiaries and improving transparency through market participation. BCCL has stated that the IPO will help it realise the benefits associated with listing.

Bharat Coking Coal is India’s largest coking coal producer, according to a Crisil report, supplying various grades of coking and non-coking coal mainly to the steel and power sectors. Incorporated in 1972, the company operates primarily in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal.

The company operates 34 mines and reported coal production of 40.50 million tonnes in FY25, up 33 per cent from FY22. Revenue from operations stood at Rs 13,802 crore, with a net profit of Rs 1,204 crore in FY25.