Bharat Coking Cal IPO: Key Things You Should Know Before Subscribing

After a record-breaking 2025, the Indian IPO market is set to welcome its first major IPO of 2026. Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India, will open its ₹1,071 crore public issue for subscription starting January 9.

The three-day IPO is priced between ₹21 and ₹23 per share, with a ₹1 discount for eligible employees. Investors can subscribe for a minimum lot of 600 shares, with additional lots in multiples of the same. Bharat Coking Coal IPO is a complete offer-for-sale, with Coal India divesting a 10% stake in BCCL.

Key Highlights of Bharat Coking Limited

Leading Coking Coal Producer: BCCL is India’s largest domestic coking coal producer, contributing 40.5 million tonnes, which accounts for nearly 58.5% of the country’s total coking coal output. The company also holds around 8 billion tonnes in reserves, sufficient for over 100 years of mining at current output.

Production Expansion on the Horizon: BCCL plans to ramp up production to 54 million tonnes by FY30. Coal washing capacity is also set to nearly double, from 13.65 million tonnes to 27–28 million tonnes, with the commissioning of three new washeries.

Strong Demand Outlook: Coking coal demand is expected to remain robust, closely linked to steel production. With India’s steel capacity projected to nearly double by 2030, BCCL anticipates continued medium- to long-term demand growth.

Revenue Dip in H1: Revenue fell 17% in H1 due to heavy rainfall affecting mining operations and a weak global coking coal price environment. The actual impact on volumes was limited to roughly 1 million tonnes.

FY30 Revenue Guidance: At a target production of 54 million tonnes, management expects revenues of around ₹20,000 crore by FY29-30.

Strategic Focus on Steel Customers: Most of the additional 15 million tonnes of production is expected to go to the steel sector, with steel deliveries projected to increase nearly sixfold. Power sector volumes are likely to remain stable.

Also Read: Bharat Coking Coal IPO: Coal India Subsidiary to Open for Subscription on January 9

Use of IPO Proceeds: The ₹1,071 crore raised will go entirely to Coal India to fund its ₹1 lakh crore diversification capex, not for dividend payouts. There is no set timeline for selling the remaining 15% stake; any future divestment will depend on market conditions.

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