Coal India Ltd is preparing to list its two subsidiaries, Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI), via IPOs. The draft red herring prospectus (DRHP) will be filed soon with SEBI. While the IPO timeline depends on market conditions, Book Running Lead Managers (BRLM) have already been appointed. Coal India aims to boost transparency and raise capital as part of its expansion and divestment plans.
Coal India Ltd (CIL) has officially initiated the process to list two of its key subsidiaries—Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI)—on Indian stock exchanges. The company announced on Monday that draft red herring prospectuses (DRHPs) will be filed soon with the Securities and Exchange Board of India (SEBI), marking a significant step in the disinvestment and expansion plan of the coal major.
Speaking at the CII Mining and Construction Equipment Summit, CIL Director of Business Development Debasish Nanda confirmed that the groundwork is in progress and Book Running Lead Managers (BRLMs) have already been appointed for the upcoming initial public offerings (IPOs).
The Coal Ministry had previously indicated plans for listing these subsidiaries, though it emphasized that actual IPO timelines would depend on prevailing market conditions.
About the Subsidiaries
- Bharat Coking Coal Ltd (BCCL) is engaged in mining coking coal, a critical component in steel production.
- CMPDI functions as the technical and consultancy wing of Coal India, providing key support in mine planning, environmental assessment, and resource exploration.
Parent Company Performance
Coal India continues to dominate the country’s coal production, contributing over 80% of India’s total output. The company operates through seven mining subsidiaries and one consultancy division, making it a central player in India’s energy sector.
In its recent financial performance, Coal India posted a 12% YoY increase in consolidated net profit for the quarter ending March 2025, reporting ₹9,604.02 crore. Total income during the same period rose to ₹41,761.76 crore from ₹40,457.59 crore in the previous year.
Coal production in April stood at 62.1 million tonnes (MT), remaining largely flat compared to the same month last year. For the financial year 2024–25, the company produced 781.1 MT of coal, falling slightly short of its annual target. However, CIL has ambitious plans for the current fiscal year 2025–26, aiming to produce 875 MT and achieve an offtake of 900 MT.
The proposed IPOs of BCCL and CMPDI are expected to enhance transparency and bring in fresh capital for expansion. If successful, the listings would also open up investment opportunities in India’s core energy and mining sectors, which are poised for growth amid rising industrial demand.
