BCCL Files DRHP for IPO
By Ankur Chandra | Published at: Jun 2, 2025 05:49 PM IST
Mumbai | 2 June 2025: Bharat Coking Coal Limited (BCCL), a fully owned subsidiary of Coal India Limited, has submitted its Draft Red Herring Prospectus (DRHP) to SEBI for a proposed initial public offering. The IPO will consist entirely of an Offer for Sale (OFS) involving up to 46.57 crore equity shares. The Government of India, through Coal India, will divest its stake.
The IPO is a part of the central government’s ongoing disinvestment strategy. BCCL will not issue new shares or raise capital through this offer. The company aims to enhance its market visibility and facilitate promoter divestment by getting listed on BSE and NSE.
IPO Snapshot
| Detail | Info |
|---|---|
| DRHP Filing Date | May 30, 2025 |
| Issue Opens | [To be updated] |
| Issue Closes | [To be updated] |
| Price Band | ₹[●] – ₹[●] |
| Issue Size | ₹[●] Cr / 46.57 crore shares |
| Listing Exchange | BSE, NSE |
| Allotment Date | [To be updated] |
| Listing Date | [To be updated] |
Offer Structure
The IPO consists solely of shares held by Coal India Limited, which currently owns 100% of BCCL. The weighted average cost of acquisition for these shares is ₹10 each. Since it is a pure OFS, BCCL will not receive any proceeds from the offering.
Company Overview
Founded in 1972, BCCL is a major producer of both coking and non-coking coal, operating in the Jharia (Jharkhand) and Raniganj (West Bengal) coalfields. It runs 32 mines – 25 opencast, 3 underground, and 4 mixed – primarily supplying the steel and power sectors. Coal production rose 32.7%, from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25.
Financial Highlights (FY23–FY25)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations (₹ Cr) | 13,998.45 | 14,045.34 | 13,296.73 |
| Net Profit (₹ Cr) | 1,240.19 | 1,564.46 | 664.78 |
| Net Worth (₹ Cr) | 6,551.23 | 5,355.47 | 3,791.01 |
| EPS (₹ per share) | 2.66 | 3.36 | 1.43 |
| NAV per share (₹) | 14.07 | 11.50 | 8.14 |
| Total Borrowings (₹ Cr) | Nil | Nil | Nil |
The company has a zero-debt profile, strong net worth, and consistent profitability over the past three fiscal years.
Key Risks and Considerations
- Revenue Dependency: 88% of FY25 revenue came from the top 10 customers
- Operational Concentration: All mines are located in Jharkhand and West Bengal
- Contingent Liabilities: ₹4,188.74 crore as of March 31, 2025
- Sectoral Headwinds: Transition to renewable energy may impact future demand
- Legal Risks: Ongoing regulatory and tax matters disclosed
Promoter Details
- Promoter: Coal India Limited
- Pre-IPO Holding: 100%
- Post-IPO Holding: To be determined post pricing
Lead Managers & Registrar
- BRLMs: IDBI Capital, ICICI Securities
- Registrar: KFin Technologies Ltd
What Lies Ahead
The IPO dates, pricing, and lot size will be finalised after SEBI’s review of the DRHP and subsequent filing of the Red Herring Prospectus. The offering is seen as a major move in India’s PSU divestment roadmap and a pivotal step for the coal sector.
REF: https://nsearchives.nseindia.com/corporate/Registration_31052025191031_BCCLDRHP.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. Every effort is made to ensure the accuracy, relevance, and timeliness of the information provided. However, inadvertent errors or omissions may occasionally occur.
Should you have any concerns, queries, or wish to point out any discrepancies in our content, please write to us at content@hdfcsec.com. Your feedback is valuable and helps us maintain the highest standards of content integrity.
Please note that the information shared is intended solely for informational purposes and should not be construed as investment advice. Users are advised to consult their financial advisors before making any investment decisions.
