BCCL IPO: What You Need to Know

What’s Happening? Bharat Coking Coal Ltd (BCCL) — a subsidiary of Coal India Ltd (CIL) — has filed papers with SEBI for an Initial Public Offering (IPO). Type of IPO? It’s a pure Offer for Sale (OFS) — meaning no new shares will be issued. CIL will sell 465.7 crore shares (entire holding), reducing its stake. Financial Snapshot • FY25 Profit: ₹1,240 crore (↓ 20.7% YoY) • FY25 Revenue: ₹13,998 crore (↓ slightly from ₹14,045 crore in FY24) • Main product: Raw coking coal – used for steelmaking (76% of revenue) Who Can Invest? • Up to 60% of QIB (big investors) quota may go to Anchor Investors • Of that, 1/3rd is reserved for Indian mutual funds, if they bid at the right price Market Context: Coking coal prices are falling as supply from Australia is improving. However, India remains a strong demand market, supporting long-term outlook. No Green Shoe Option: There’s no extra allotment cushion in this IPO — what’s offered is fixed. Leadership Update: CIL’s Mukesh Choudhary, Director (Marketing), is now also Director (Business Development) (temp role starting June 1, 2025). Why This Matters? • This IPO gives investors a chance to own a piece of India’s steel fuel supplier • BCCL is 100% owned by CIL today — this IPO starts its market journey • Investors should watch coal price trends, steel demand, and government divestment goals Bottom Line: BCCL's IPO is a major move in India’s coal sector. No new shares, just CIL selling its stake. Know the risks, follow the pricing, and keep an eye on demand for steel.