PSU IPOs: Following the buzz around the BCCL IPO, PSU stock Coal India announced proposed listings of two more of its major subsidiaries on Dalal Street, setting the stage for a wave of high-profile public sector offerings (IPOs) and helping kick-start India’s IPO market calendar for 2026.
In separate regulatory filings to the stock exchanges, Coal India said its board has granted in-principle approval for the listing of Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL), two wholly-owned subsidiaries of the firm.
The decision for the listings followed an advisory from the Ministry of Coal, which had asked the company to initiate concrete steps to facilitate the listing of subsidiaries in the upcoming financial year. “Ministry of Coal, vide its Office Memorandum… had advised CIL to take concrete steps to ensure further listing of subsidiaries namely MCL and SECL in the upcoming financial year,” the company said in its filing
The company said this decisions were taken through a circular resolution of the board and aligns with the Ministry of Coal’s broader plan to advance subsidiary listings. Coal India reiterated that the MCL and SECL listing proposals would be forwarded to the Ministry of Coal for submission to Department of Investment and Public Asset Management (DIPAM) and would require statutory and regulatory approvals before any further progress.
The stock rose in the previous session (Tuesday) on the back of reports that another Coal India-arm, Bharat Coking Coal Limited (BCCL) is gearing up to launch its initial public offering (IPO) soon. As per media reports, the issue could hit the market within the next two weeks.
About BCCL IPO
Media reports indicate that Bharat Coking Coal’s (BCCL) proposed initial public offering is pegged at around ₹1,300 crore, translating into an estimated pre-listing valuation of nearly ₹13,000 crore. The issue is likely to be structured entirely as an offer for sale, with Coal India expected to divest close to 10% of its holding in the subsidiary by selling roughly 46.57 crore equity shares.
As the IPO will not include a fresh issue component, the proceeds will be received entirely by Coal India rather than Bharat Coking Coal. The planned stake dilution is aimed at value unlocking and improving transparency through market participation.
Key details such as the price band, lot size and final structure of the issue are expected to be announced nearer to the launch date. ICICI Securities and IDBI Capital Markets and Securities have been appointed as book-running lead managers, while KFin Technologies will act as registrar. The Securities and Exchange Board of India approved BCCL’s draft red herring prospectus in September.
Incorporated in 1972, Bharat Coking Coal is a major domestic producer of coking coal, primarily supplying the steel industry, with mining operations concentrated in Jharkhand’s Jharia coalfields and West Bengal’s Raniganj coalfields.
Coal India Share Performance
Coal India share price will be in focus on Wednesday, December 24, likely to extend gains for the sixth straight session after this development. The PSU stock ended the previous session 3.66% higher at ₹400.40
The stock is just 4% away from its peak of ₹417.25, hit in May 2025. Meanwhile, it hit its 52-week low of ₹349.20 in February 2025.
In the long term, it has given multibagger returns, surging almost 200% in 5 years.
The stock’s performance has remained largely subdued in recent periods. It has gained about 4.5% over the past one year, while returns over the last six months stand at 2%. On a shorter-term basis, the scrip has moved up 1.5% in the past three months and has risen by nearly 6% over the last one month.
