Coal India to File Draft Papers for 2 Subsidiaries’ IPO Soon

Coal India Ltd (CIL) is preparing to file draft papers for the proposed Initial Public Offerings (IPOs) of its 2 subsidiaries – Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI), as per the reports. The company confirmed that the Draft Red Herring Prospectus (DRHP) will be submitted to the Securities and Exchange Board of India (SEBI) soon.

According to CIL’s Director of Business Development, Debasish Nanda, the Book Running Lead Manager (BRLM) for the IPOs has already been appointed. The Ministry of Coal had earlier indicated that both listings will take place, though the timeline will depend on market conditions.

Company Structure and Production

Coal India operates 7 coal-producing subsidiaries and 1 technical and consultancy company. It accounts for over 80% of the country’s coal production. In FY 2024-25, CIL produced 781.1 million tonnes of coal,  short of its target for the year. For FY 2025-26, the production target is set at 875 million tonnes, with an offtake goal of 900 million tonnes.

In April 2025, coal production stood at 62.1 million tonnes, almost unchanged from the same month last year.

Financial Performance

For the quarter ending March 2025, Coal India reported a 12% rise in consolidated net profit at ₹9,604.02 crore, compared to the same quarter last year. Total income rose to ₹41,761.76 crore from ₹40,457.59 crore. Total expenses also saw a slight increase, reaching ₹29,057.30 crore.

As of 1:39 PM on May 20, Coal India Ltd share price was trading at ₹412.30, a 2.38% increase, with a 1.55% gain over the past 6 months but a 15.97% decline over the past year.

Read more: Coal India Share Price in Focus: Check Why?

Other Developments

As per the news reports, the company is also working on 3 coal gasification projects at different stages and developing pithead power plants. One such plant, with a capacity of 1,600 MW, is being planned in Odisha with an estimated project cost of ₹16,000 crore. Land acquisition for the project is in progress.

CIL has also signed an agreement with Damodar Valley Corporation (DVC) for a similar project, structured as a 50:50 joint venture. The company’s capital expenditure target for the current financial year is ₹17,000 crore.

Conclusion

Coal India’s plan to list BCCL and CMPDI comes alongside its efforts in power generation and coal gasification, as it continues its core operations and expansion.

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