About Bharat Coking Coal Ltd
Bharat Coking Coal Ltd (BCCL) is a Central PSU and a wholly‑owned subsidiary of Coal India Ltd, under the Ministry of Coal. It mainly produces coking coal, which is the special type of coal needed to make steel in blast furnaces. BCCL operates in the Jharia and Raniganj coalfields (Jharkhand & West Bengal) and supplies a large part of India’s domestic coking coal requirement to steel plants and other industrial users.
Read full DRHP here: CLICK HERE
What they do:
- Mine and sell coking coal and some thermal coal
- Supply to steel, power and other industrial customers in India
IPO Details Table
| Detail | Explanation | Data |
|---|---|---|
| IPO Type | Mainboard PSU IPO | BSE & NSE listing |
| IPO Opening Date | When bidding starts | 9 Jan 2026 |
| IPO Closing Date | Last day to apply | 13 Jan 2026 |
| Price Band | Min–max offer price | ₹21 – ₹23 per share |
| Face Value | Nominal value | ₹10 per share |
| Issue Size | Total offer value | ₹1,071–1,078 crore (approx) |
| Issue Structure | Shares on offer | 46.57 crore shares (100% OFS) |
| Fresh Issue | New shares | Nil (0) – no money to company |
| Offer for Sale | Shares sold by Coal India | 4,65,700,000 shares |
| Lot Size | Minimum bid | 600 shares (~₹13,800 at ₹23) |
| Retail Investment (Min) | 1 lot | ₹13,800 (600 × ₹23) |
| Listing Date (Tentative) | Shares start trading | 16 Jan 2026 |
| Promoter | Selling shareholder | Coal India Ltd / President of India via Ministry of Coal |
| Registrar | Handles allotment | KFin Technologies Ltd |
| Book Managers | Lead managers | JM Financial, ICICI Securities, SBI Caps, etc. (as per RHP summaries) |
REGISTRAR: CLICK HERE
IPO Timeline
| Event | Date | What Happens |
|---|---|---|
| RHP Filed | 2 Jan 2026 | Final offer document filed with SEBI, BSE & NSE |
| Anchor Book | 8 Jan 2026 | Institutional anchors subscribe before public issue |
| IPO Opens | 9 Jan 2026 (Fri) | Retail & others can start applying |
| IPO Closes | 13 Jan 2026 (Tue) | Last day to submit bids (UPI mandate till 5 pm) |
| Basis of Allotment | 14 Jan 2026 | Finalization of who gets how many shares |
| Refunds Start | 15 Jan 2026 | Refund for non‑allotted applicants |
| Shares in Demat | 15 Jan 2026 | Shares credited to Demat accounts |
| Listing Date | 16 Jan 2026 (Fri) | Trading begins on NSE & BSE |
Business Model & Revenue Model
How BCCL Makes Money
- Core product: Coking coal (for steel) plus some non‑coking/thermal coal.
- Customers: Steel plants (SAIL and private players), power plants, and other industrial users.
- Revenue model:
- Sell coal under long‑term supply arrangements and e‑auction.
- Prices influenced by Coal India’s notified prices and e‑auction realizations.
Scale & Operations
- Production volume: Coal output rose from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25.
- Key assets: Underground and open‑cast mines in Jharia and Raniganj coalfields.
Key Financial Metrics (Consolidated Snapshot)
(Approx numbers as per DRHP / analyst summaries; all amounts in ₹ crore unless mentioned)
| Metric | FY22 | FY23 | FY24 | Trend |
|---|---|---|---|---|
| Coal Production (MT) | 30.51 | 39.11 | 40.50 | Strong volume growth |
| Revenue from Ops | ~₹8,000–9,000 Cr | Higher YoY | Stable | High scale, but cyclical |
| EBITDA Margin | Mid‑teens | Mid‑teens | Mid‑teens | Reasonable for PSU miner |
| Net Profit | Positive | Positive | Positive | Profitable for multiple years |
| ROE | Low‑mid teens | Low‑mid teens | Low‑mid teens | Typical PSU return profile |
| Debt | Very low | Very low | Very low | Balance sheet strong (part of Coal India) |
(Exact FY24 PAT/ROE numbers are in the RHP; public summaries mainly highlight volumes, profitability, and low leverage.)
DRHP / RHP Highlights (Core Points)
- IPO is entirely OFS of 46.57 crore shares by Coal India Ltd.
- No fresh issue – company will not receive any IPO proceeds; all money goes to Coal India / Government.
- Promoters (Govt + Coal India) hold 100% pre‑IPO and will reduce stake post listing per disinvestment plan.
Industry Outlook – Coking Coal & Steel
- Coking coal is critical for steel making; India currently imports a large portion of its coking coal needs.
- Government wants to reduce import dependence and increase domestic coking coal output; BCCL is central to that strategy.
- Steel demand in India is expected to grow 6–7% annually with infra, housing, and manufacturing push.
So long‑term, demand for BCCL’s product is structurally supported, but prices and margins will still move with the global coal and steel cycle.
Employee Cost & PSU Cost Structure
Public data summaries for BCCL don’t break out a clean “employee cost to revenue %”, but some DRHP commentary and PSU coal norms indicate that:
- Employee costs are a large component of total expenses (miners, engineers, safety, pensions).
- For Coal India group, historically employee costs can be 35–45% of total expenses; BCCL is likely in similar range as a labour‑intensive underground miner.
This means operating leverage is limited; even if coal prices improve, a big chunk of cost is “fixed” (salaries, benefits), which caps margin expansion.
Promoter Acquisition Cost & OFS Logic
- Promoter: Coal India Ltd / President of India (Government of India).
- BCCL was carved out as a subsidiary decades ago; effective “cost of acquisition” for the Govt/Coal India is historical & nominal, not comparable to today’s issue price.
- The IPO is part of the disinvestment program – Govt is monetizing stake in Coal India subsidiaries to raise funds and list more PSUs.
In simple words:
Government is using this IPO to raise cash, not to fund BCCL’s growth; BCCL will continue capex from internal accruals and Coal India support.
Key Risks & “Tricks” (Strengths) for Retail Investors
Biggest Strengths (“Tricks” of the Company)
- Strategic PSU for Coking Coal
- Only a handful of domestic producers of coking coal; BCCL has key reserves in Jharia region.
- As India pushes steel and infra, long‑term demand tailwind exists.
- Volume Growth Already Visible
- Production up from 30.51 MT (FY22) → 40.50 MT (FY25), showing BCCL is scaling output.
- Part of Coal India Ecosystem
- Backed by Coal India’s technical, financial, and marketing strengths.
- Low Leverage
- Like Coal India, BCCL operates with very low debt, reducing financial risk.
Key Risks & Concerns
| Risk | Why It Matters |
|---|---|
| 100% OFS IPO | No fresh money goes to BCCL; IPO is purely a stake sale by Coal India/Govt, not growth funding. |
| Commodity & Cycle Risk | Earnings depend on coal prices, e‑auction realizations, and steel demand; downturns can sharply hit profits. |
| Regulatory & ESG Risk | Coal is under global pressure (climate, ESG); long‑term risk of higher carbon taxes, stricter norms, or demand shifts. |
| PSU Governance Overhang | Decisions on pricing, capex, and dividends often driven by Govt priorities, not just minority shareholders’ interests. |
| Employee Cost & Legacy Liabilities | High staff costs & pension/benefit obligations limit flexibility and margins, especially in downturns. |
| No Control on Policy | Royalty hikes, cess, or mining regulation changes can hit profits suddenly. |
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.