Bharat Coking Coal IPO opens tomorrow, January 9: Here's what BCCL CMD Manoj Kumar Agarwal told Zee Business

Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India Ltd, has fixed a price band of Rs 21 to Rs 23 per share for its Rs 1,071-crore initial public offering (IPO), which will open for subscription on January 9 and close on January 13.

The issue, which is entirely an offer for sale (OFS) by Coal India, will see the company list on the BSE and NSE on January 16, 2026.

BCCL IPO aims to unlock value, says CMD

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Speaking to Zee Business Managing Editor Anil Singhvi, BCCL Chairman and Managing Director Manoj Kumar Agarwal said the proposed listing is aimed at unlocking the true value of the coking coal business and strengthening market discipline.

“BCCL is a company with a history of more than 50 years and holds around 8 billion tonnes of coking coal reserves,” Agarwal said. He said Bharat Coking Coal contributes about 58.5 per cent of India’s total coking coal output, making it the country’s largest producer of the key raw material used by the steel industry.

“Our production last year stood at about 40.5 million tonnes, and we are targeting 56 million tonnes of coking coal production by 2030,” Agarwal said.

IPO structure and valuation

The IPO comprises the sale of 46.57 crore equity shares by Coal India. As per the red herring prospectus, 50 per cent of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors. At the upper end of the price band, Bharat Coking Coal is valued at over Rs 10,700 crore.

Coal India Director (Finance) Mukesh Agarwal said the IPO is a step towards reflecting the real market value of the coking coal business.

“The real value of coking coal will be reflected in the market after listing, which will benefit shareholders of both Bharat Coking Coal and Coal India,” he said.

Operations, technology and coal washing

Bharat Coking Coal operates 34 mines, including 25 open-cast mines, four underground mines and four mixed mines. The company’s mines are located mainly in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal. It produces coking coal, non-coking coal and washed coal for use primarily in the steel and power sectors.

Agarwal said BCCL is adopting new mining technologies such as continuous miners, longwall mining and highwall mining to improve output. He added that the company is also monetising previously closed deep underground mines to increase production.

On coal quality, Agarwal said domestic coal typically has an ash content of around 39 to 40 per cent, while the steel industry requires coking coal with lower ash levels.

“We wash the coal to reduce the ash content to around 18–19 per cent and then blend it with imported coal,” he said.

BCCL currently operates five washeries with a total capacity of 13.65 million tonnes per year, which is expected to nearly double by 2030. Agarwal said this will help reduce dependence on imported coking coal.

Financial performance and divestment plans

On the financial front, Bharat Coking Coal reported revenue of Rs 13,802 crore and profit of Rs 1,204 crore in FY25. Coal production rose from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25.

Mukesh Agarwal said the recent decline in revenue was due to abnormally high rainfall and lower e-auction prices. “Mining has high fixed costs, and abnormal rainfall affected production,” he said.

The BCCL IPO is the first mainboard issue of 2026 and part of Coal India’s broader plan to monetise its subsidiaries, including Mahanadi Coalfields Ltd and South Eastern Coalfields Ltd.