Coal India Share Price: Maharatna PSU's BCCL and CMPDI subsidiaries gear up for IPO

PSU Maharatna Coal India stock gained at the open but reversed and fell on Wednesday after the Maharatna PSU clarified that the listing process involving two of its subsidiaries—Bharat Coking Coal Ltd (BCCL) and Central Mine Planning & Design Institute Ltd (CMPDI)—is already underway. The company informed exchanges that it has appointed Book Running Lead Managers (BRLMs) for both BCCL and CMPDI, and the Draft Red Herring Prospectus (DRHP) for both companies is being prepared.

“Activities related to listing of CMPDIL and BCCL, wholly owned subsidiaries of the company, are in progress… DRHP is under preparation and further update will be provided once filing is made in accordance with applicable law,” Coal India said in its exchange filing. 

After the announcement, Coal India shares increased 1.1 per cent to Rs 412.95 on the NSE, but ultimately could not maintain that price. The shares have corrected about 25 per cent from the 52-week high of Rs 544.70 that it reached in August 2024.

Listing Details

• CMPDIL is Coal India’s technical subsidiary responsible for coal prospecting and mine planning. CMPDI achieved a 33 per cent year-on-year increase in FY25 net profit at Rs 667 crore.

• BCCL, on the other hand, is the main supplier of coking coal for steelmaking and announced FY25 net profit at Rs 1,240 crore—a 21 per cent decrease yo-y—but solid economic performance has put thousands of losses behind it.
• BCCL also achieved its highest-ever quarterly coal production in March 2025 at 11.44 million tonnes, and its second-highest-ever annual production, at 40.5 million tonnes—despite the most rainfall in 50 years. Rail dispatches also increased by 6 per cent.
• Coal India initially got the board's approval back in May 2022 to sell a stake of up to 25 per cent in BCCL. The company is now firming up its draft red herring prospectuses (DRHPs) for BCCL and CMPDI. While, it is understood, the stake sale will be conducted in a phased manner in order to test market appetite.

Brokerages Inputs

• Anand Rathi: “Auction-linked volumes will rise to 106 MT by FY27. Buy with Rs 470 target.”

• Antique Stock Broking: “Cut FY26/27E Ebitda by 5-6 per cent. New target at Rs 477.”

Governent Push 

According to Coal Ministry, Coal imports into India dropped 9.2 per cent during the period from April to February 2025. The proposed listings are part of a broader effort to unlock value from government owned enterprises. The Centre has set a disinvestment and asset monetisation target of Rs 47,000 crore for FY2025-26, slightly lower than the Rs 50,000 crore target set for the previous year.