Bharat Coking Coal Limited is entering the capital markets with its mainboard IPO to raise ₹1,071.11 crore, entirely through an Offer for Sale (OFS). The company is engaged in the production of coking coal, non-coking coal, and washed coal, catering primarily to the steel and power industries.
The IPO is proposed to be listed on BSE and NSE, with the issue opening on January 9, 2026 and closing on January 13, 2026.
This review covers Bharat Coking Coal’s business profile, operational strengths, financial performance, IPO structure, risks, and key investor considerations, based on disclosures in the Red Herring Prospectus (RHP).
(Source: Chittorgarh)
Company Overview
Incorporated in 1972, Bharat Coking Coal Limited (BCCL) is a wholly owned subsidiary of Coal India Limited. The company is India’s largest producer of coking coal, a critical raw material used in steel manufacturing.
As of September 30, 2025, BCCL operates 34 mines, comprising underground, opencast, and mixed mining operations, spread across Jharkhand and West Bengal, with a total leasehold area of 288.31 sq. km.
The company accounted for 58.50% of India’s total domestic coking coal production in FY25 and holds estimated coking coal reserves of approximately 7,910 million tonnes.
Business Model & Operations
Bharat Coking Coal’s operations include:
- Production of coking coal, non-coking coal, and washed coal
- Opencast and underground mining projects
- Coal washeries and beneficiation facilities
- Monetisation of idle washeries under the WDO (Washery Developer and Operator) model
- Reopening of discontinued underground mines under the MDO (Mine Developer and Operator) model
- Solar power project monetisation through self-consumption and grid injection
The company’s coal production increased from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25, reflecting steady operational scale-up.
Competitive Strengths
- Largest coking coal producer in India with access to large reserves
- Strategic mine locations with integrated washeries
- Strong parentage of Coal India Limited
- Critical supplier to steel and power industries
- Established operational infrastructure and scale
Industry Context
The Indian coking coal sector is:
- Strategically important for domestic steel production
- Characterised by limited substitutes
- Highly regulated and capital-intensive
- Dependent on government policies and industrial demand
Domestic production remains structurally constrained, positioning BCCL as a key supplier in India’s coal ecosystem.
(Source: Chittorgarh)
Financial Performance
Financial Summary (₹ in crore)
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 18,711.13 | 17,283.48 | 14,727.73 | 13,312.86 |
| Total Income | 6,311.51 | 14,401.63 | 14,652.53 | 13,018.57 |
| Profit After Tax | 123.88 | 1,240.19 | 1,564.46 | 664.78 |
(Source: RHP | Chittorgarh)
Key Ratios & Metrics (as of March 31, 2025)
- EBITDA Margin: 16.36%
- PAT Margin: 8.61%
- RoNW: 20.83%
- ROCE: 30.13%
- Price to Book Value: 1.63
The company has demonstrated stable profitability, supported by consistent coal demand and scale advantages.
(Source: RHP | Chittorgarh)
IPO Details
| Detail | Information |
|---|---|
| IPO Opening Date | Friday, Jan 9, 2026 |
| IPO Closing Date | Tuesday, Jan 13, 2026 |
| Price Band | ₹21 – ₹23 per share |
| Issue Size | ₹1,071.11 Cr (100% OFS) |
| Lot Size | 600 Shares |
| Minimum Investment (Retail) | ₹13,800 |
| Listing Platform | BSE, NSE |
| Tentative Listing Date | Friday, Jan 16, 2026 |
(Source: RHP | Chittorgarh)
GMP Trend & Market Sentiment
As of January 5, 2026, 12:57 PM, grey market indicators show strong investor interest in the Bharat Coking Coal IPO. The latest GMP stands at ₹16.5, indicating an estimated listing price of ₹39.5 per share against the upper price band of ₹23.
This implies an expected gain of 71.74% per share. Over the last three grey market sessions, the GMP has trended upward, reflecting positive sentiment ahead of listing.
However, investors should note that GMP is unofficial and subject to volatility, and investment decisions should not rely solely on grey market data.
(Source: Chittorgarh)
Risks & Concerns
- Entire issue is an OFS with no fresh capital infusion
- Exposure to regulatory and policy-driven coal sector risks
- Dependence on steel and power industry demand cycles
- Commodity price volatility impacting margins
- Environmental and operational risks associated with mining
Conclusion
The Bharat Coking Coal IPO provides exposure to India’s largest coking coal producer with strong reserve backing, operational scale, and government ownership through Coal India Limited. The company benefits from its strategic importance to the steel sector and limited domestic competition.
While grey market sentiment appears positive, investors should carefully consider sectoral risks, regulatory exposure, and the absence of fresh capital infusion. The IPO may suit long-term investors seeking exposure to core infrastructure-linked industries, while risk-averse investors may prefer a cautious approach.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation.
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