Bharat Coking Coal IPO

About Bharat Coking Coal (BCCL) IPO

The Bharat Coking Coal (BCCL) IPO is entirely an offer for sale (OFS) by its parent Coal India Ltd. There is no fresh issue component in the IPO. Bharat Coking Coal is a Mainboard IPO which will be listed on the NSE and the BSE. The offer for sale (OFS) entails the sale of 46,57,00,000 shares (46.57 crore shares) to the public. Since there is no fresh issue, there is no question of utilization of funds and the entire proceeds of the OFS will go to the parent Coal India Ltd. It will be a 100% book-built issue.

The price band for the IPO is ₹21 to ₹23. The IPO will be open for subscription from Jan 09, 2026 to Jan 13, 2026. The lots sizes for the IPO is 600 shares. The minimum investment required by retail investors in ₹13,800 (600 shares) based on upper price.

Bharat Coking Coal is a wholly owned subsidiary of Coal India Ltd (a Navaratna PSU). Bharat Coking Coal (BCCL) is the largest coking coal producer in India and accounts for 58.5% of the domestic coking coal output as of FY25. BCCL has estimated coking coal reserves of nearly 7,910 million tonnes. The company produces various grades of coking coal, non-coking coal, and washed coal and its products predominantly find applications in the steel and power sectors. Bharat Coking Coal was incorporated in 1972 and has been conferred the Mini Ratna status since 2014. As of fiscal 2025, Bharat Coking Coal Ltd produced 40.5 million tonnes of coking coal, which is 33% higher than FY22 output. As of September 2025, BCCL has a total of 34 operational mines. These include 4 underground mines, 26-open-cast mines, and 4 mixed mines.

Objectives of Bharat Coking Coal (BCCL) IPO

Bharat Coking Coal (BCCL) IPO is entirely an offer for sale. There will be no fresh funds coming into the company from the IPO and the proceeds from the offer for sale (OFS) will go entirely to the parent company, Coal India ltd. The key objectives of the IPO include:

• Getting Bharat Coking Coal listed on the stock exchanges
  
• Helping Coal India Ltd monetize the valuation of its subsidiaries
  
• Bring about greater transparency and corporate governance standards through listing
  
• Ensure wider visibility and branding for Bharat Coking Coal through the public listing
  
• Enhance the free float in the market by boosting public holdings through the OFS
  

• Anchor portion (if any) will be carved out of QIB allocation

Industry Outlook

Coal continues to account for 50% of all mined minerals in India, with all other metallic minerals accounting for the other 50%. The value of coal produced in India has grown at a CAGR of 8.02% between 2019 and 2024; but is projected to grow at 12.74% between 2025 and 2030. Coking coal is one of the downstream products of Coal Mining and finds extensive applications in the steel industry. The other downstream product (Thermal Coal) finds applications in power, cement, and fertilizers. The classification of coking coal is based on ash content. Due to its coke forming properties, coking coal is often referred to as metallurgical coal.

As of the year 2023, the world’s coal reserves were estimated at 1,166 Billion MT. India is among the top-5 coal producers in the world after the US, Russia, China, and Australia. India’s geological reserves are estimated at 389.42 Billion MT. In India; the states of Odisha, Jharkhand, Chhattisgarh, and West Bengal jointly account for 80% of coal production. Effective 2020, the government has allowed 100% FDI in coal mining. Ministry of Coal has also embarked on an ambitious “Mission Coking Coal” project to enhance domestic coking coal output and reduce reliance on imports. The target is to boost the production of coking coal to 140 MT by year 2030.

The global demand for coking coal is largely driven by the steel industry. Global crude steel output between 2010 and 2023 picked up from 1,433 MTPA to 1,892 MTPA, which led to a surge in demand for coking coal as key input. In India, steel demand has been growing at around 1.5 times the GDP growth rate. Currently, the demand for coking coal stands at 67 million MT, but expected to grow to 104 million MT by the year 2030. Today, coking coal accounts for just 6% of overall coal production, but that is poised to grow gradually. Coking coal supply deficit is 15 MMT, expected to grow to 25 MMT by 2030.

Bharat Coking Coal Company Information

Bharat Coking Coal is engaged in the production of coking coal, a key input for the steel industry. Bharat Coking Coal has total geological reserves of 14,865 MMT, of which 7,910 MMT is coking coal. Coking coal reserves at 36.8 Billion tonnes are around 9-10% of the total coal reserves of India.

Bharat Coking Coal has a market share of 4% in overall coal production but a market share of 58.5% in coking coal. In FY25, Bharat Coking Coal produced 40.5 MMT of coal, of which 96% was coking coal. The only other major company that has a substantial share in coking coal production is Central Coalfields Ltd (CCL), which is also a subsidiary of Coal India Ltd. It has a share of over 30%.

Strengths of Bharat Coking Coal (BCCL) IPO

• Overall demand for coking coal is likely to grow at an exponential rate with the rising demand from steel industry. With 58.5% market share, BCCL is best poised to capture this growth.
• The company has maintained healthy RONW ratio of over 30% and return on capital employed (ROCE) of more than 30% in the latest year. These are far better than global benchmarks.
• With the government encouraging indigenization of materials supply, there is greater encouragement and capital support likely from the government for coking coal.
• BCCL has pioneered several technological breakthroughs like Powered Support Longwall Technology for underground coal mines
• BCCL has seen consistent improvement in the output per man shift hinting at better productivity and utilization of assets.
• Strong parentage of Coal India Limited
• Largest coking coal producer in India with access to large reserves
• Well positioned to capitalize on demand for coking coal in India

Risks for Bharat Coking Coal (BCCL) IPO

• The coking coal produced by BCCL is of lower grade and is classified as washery grade, which cannot be directly used in steel plants.
• Many of its older mines at Raniganj and Jharia have been facing persistent underground fires, leading to tremendous loss of output and operational risks.
• The Paris agreement, to which India is a signatory, envisages a world that uses less of fossil fuels and more of RE. That is a risk factor for the business model of BCCL.
• There are regulatory risks to the business of Bharat Coking Coal Ltd like imposition of carbon taxes, stringent air-quality measures, limits to fresh mine allocation, liabilities for mine closure etc.
• The company has certain contingent liabilities, which if materializes, will hurt their business.
• Fluctuations in prices of raw materials owing to factors outside the company’s control
• Dependence on top 10 customers
• Dependence on a limited number of suppliers

Anchor Investor Bidding Date

Jan 08, 2026

IPO Registrar, Book Running Lead Managers, and Market Maker

• IPO Registrar: KFIN Technologies Ltd (KFINTECH)
• Book Running Lead Managers: IDBI Capital Markets and ICICI Securities Ltd

Business Model

The business model of Bharat Coking Coal is in the niche of production of coking coal, which is a downstream by-product of coal production. Coking coal finds extensive application in the steel industry and currently, India has a domestic shortfall in this space. BCCL also has its own washeries, since most of the coal produced by BCCL is of low calorific quality.

Bharat Coking Coal Growth Trajectory

Between FY23 and FY25, the EBTIDA is nearly 2.64X, while revenues in this period have grown at a nominal CAGR of 4.6%. EBITDA margins have also improved over the last 3 years from 6.85% to 16.36%; and further to 19.37% if only the first half of FY24 is considered. Margins are lower compared to the previous year FY24, but meaningfully higher than FY23. Its capex has nearly doubled to ₹1,815 crore in FY25, compared to FY23.

Bharat Coking Coal Market Position

In the coking coal production business, Bharat Coking Coal has a market share of over 58%, with the only other significant player being Central Coalfields Ltd (CCL), with a market share of over 30%. Other players are not too significant. Its output of raw coal stood at 40.5 MT in FY25, of which 38.89 MT was represented by coking coal.

How to Apply for the Bharat Coking Coal (BCCL) IPO?

To apply for this Bharat Coking Coal (BCCL) IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.