MC EXCLUSIVE Coal India to sell remaining 15% stake in BCCL within 6 months, CMPDI IPO likely by March

The state-run coal producing major has further lined up disinvestments for its two other subsidiaries, Mahanadi Coalfields and South Eastern Coalfields in FY27. The company plans to list all its subsidiaries by 2030.

• Coal India to disinvest 15% more in BCCL within six months
• CMPDI IPO planned by March with 10-15% stake to be sold
• All subsidiaries to be listed by 2030 to unlock value

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Fresh from successfully divesting a 10 percent stake in Bharat Coking Coal Limited (BCCL), the state-run Coal India has charted a phased plan to list more subsidiaries to unlock value from both its coking coal and non-coking coal assets, sources have told Moneycontrol.

The company, which divested a 10 percent stake in its BCCL through an initial public offering (IPO), plans to disinvest the remaining 15 percent stake within the next six months, official sources said.

“We will see the market and we will try to have more value. The remaining 15% stake we will disinvest in the next six months,” the source said, adding that it might be done in phases.

Coal India will start investor roadshows for its another subsidiary, Central Mine Planning and Design Institute, in February, with plan of an IPO by March.

The IPO, expected to be an offer for sale, will be on the similar lines as BCCL and CIL will initially disinvest 10-15 percent stake, sources said.

In 2022, the company said its board had given an ‘in-principle’ approval to the divestment of 25 percent of paid-up share capital of BCCL and its subsequent listing on the stock exchanges. However, the subsidiaries were not listed back then.

BCCL produces the bulk of coking coal mined in the country, accounting for 58.50 percent of the domestic coking coal production in financial year 2024-25, according to its annual report.

CMPDI, headquartered in Ranchi, is Coal India’s consultancy firm that provides research and support for mineral exploration, mining and infrastructure engineering, among others.

In FY25, BCCL reported an annual profit of Rs 1,240.19 crore against PAT of Rs 1,564.46 crore in the previous year, according to data from the firm’s annual report.

The state-run coal producing major has further lined up disinvestments for its two other subsidiaries, Mahanadi Coalfields and South Eastern Coalfields over the next few months. The company plans to list all its subsidiaries by 2030.

“After BCCL and CMPDI, we also have Mahanadi Coal and South Eastern Coalfields. Post approval from the government, we plan to list both subsidiaries within the upcoming fiscal,” the source said.

BCCL and MCL together contribute 50 percent to the country’s coal production and will help unlock CIL’s value. The company will disinvest 25 percent stake in both these subsidiaries.

Coal India’s other subsidiaries in coal mining include Eastern Coalfields, Central Coalfields, Western Coalfields, and Northern Coalfields.

The BCCL stock made a stellar debut on January 19, listing at Rs 45.21 on BSE, a premium of 96.56 percent from the issue price.