Bharat Coking Coal Ltd (BCCL) Files Draft Red Herring Prospectus for IPO
Bharat Coking Coal Ltd (BCCL), a wholly-owned subsidiary of Coal India Limited, has recently taken a significant step towards launching its Initial Public Offering (IPO) by filing a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move marks a pivotal moment for the company, as it aims to raise capital through an entirely Offer for Sale (OFS) component, involving 46.57 crore equity shares being sold by its parent company, Coal India.
IPO Details and Management
The book-running lead managers for this IPO are IDBI Capital Markets & Securities Limited and ICICI Securities Limited, both of which bring extensive experience in managing public offerings. KFin Technologies Limited has been appointed as the registrar for the issue, ensuring a streamlined process for potential investors.
Interestingly, the announcement of BCCL’s DRHP comes just a week after another subsidiary of Coal India, the Central Mine Planning & Design Institute Limited (CMPDI), filed its own DRHP with SEBI. This series of filings underscores the growing momentum within Coal India’s subsidiaries to access public capital markets.
Utilisation of Funds
It is important to note that BCCL will not receive any portion of the proceeds from the Offer. Instead, the entire proceeds will be directed to the Promoter Selling Shareholder, which in this case is Coal India. This structure highlights the strategic intent behind the IPO, focusing on providing liquidity to the parent company while allowing BCCL to maintain its operational focus.
Financial Performance
BCCL has demonstrated robust financial performance in recent years. For the fiscal year 2025, the company reported revenue from operations amounting to ₹13,998.45 crore, showcasing its strong market presence. Additionally, BCCL’s restated profit for the year stood at ₹1,240.19 crore, reflecting its operational efficiency and profitability in a competitive sector.
Company Profile
BCCL specializes in the production of various grades of coking coal, non-coking coal, and washed coals, which are primarily utilized in the steel and power industries. The company’s flagship product, coking coal, is crucial for steel manufacturing, making BCCL a key player in India’s industrial landscape. In terms of coking coal production, BCCL was recognized as the largest producer in India for the fiscal year 2025, solidifying its leadership position in the market.
As of March 31, 2025, BCCL operates a diverse portfolio of 32 operational mines, which includes 3 underground mines, 25 opencast mines, and 4 mixed mines. This extensive operational footprint not only enhances the company’s production capabilities but also positions it strategically to meet the growing demand for coal in various sectors.
Conclusion
The filing of the DRHP by Bharat Coking Coal Ltd is a significant development in the Indian coal sector, reflecting the company’s ambition to leverage public markets for growth. With a strong financial performance and a robust operational framework, BCCL is poised to attract investor interest. However, it is essential for potential investors to conduct thorough research and consider the risks associated with investments in the coal industry.
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