PSU stock Coal India share price rose almost 4% in intra-day deals on Tuesday, December 23, extending gains for the fifth straight session. Today's rise came on the back of reports that 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.
BCCL is a Maharatna public sector subsidiary of Coal India, and its proposed listing is seen as an important move in the government’s wider strategy to unlock value from state-owned enterprises through the capital markets.
Coal India Share Performance
The PSU stock rose as much as 3.6% to its day's high of ₹400.60, trading 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.
Today is the fifth straight session of gain for the stock, rising 5% in this period. In the long term, it has given multibagger returns, surging almost 200% in 5 years.
The stock has delivered relatively subdued performance in recent periods. Over the past one year, it has risen by about 4%, while gains in the last six months have remained below 2%. In the shorter term, the scrip advanced 1.5% over the past three months and added 5.5% in the last one month.
What we know about the BCCL IPO so far
As per media reports, the Bharat Coking Coal (BCCL) IPO is estimated to be around ₹1,300 crore, which implies a pre-listing valuation of approximately ₹13,000 crore. The issue is expected to be a pure offer-for-sale (OFS), with Coal India planning to dilute close to 10% of its equity stake in BCCL. This would involve the sale of nearly 46.57 crore equity shares.
Since no fresh equity shares will be issued, the entire proceeds from the IPO will accrue to Coal India and not to Bharat Coking Coal. The proposed stake sale is intended to enhance transparency and unlock value through participation in the capital markets.
Key aspects such as the price band, lot size and final issue structure are likely to be disclosed closer to the IPO launch. ICICI Securities and IDBI Capital Markets and Securities have been appointed as the book-running lead managers, while KFin Technologies will serve as the registrar. The Securities and Exchange Board of India (Sebi) approved BCCL’s draft red herring prospectus in September, clearing the path for the listing.
Bharat Coking Coal is one of India’s key producers of coking coal, a vital raw material used mainly in steel manufacturing. Incorporated in 1972, BCCL’s mining operations are largely based in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal, two of the country’s most coal-rich regions.
Coal India remains a cornerstone of India’s energy sector, contributing over 80% of the country’s domestic coal output through its seven coal-producing subsidiaries, including BCCL. The planned listing is aligned with the company’s larger objective of unlocking value from its subsidiary businesses.
