Coal India shares rise for 5th day, up 3.5% on reports of coking coal unit's potential Rs 1,300-crore IPO

Coal India shares rise for 5th day, up 3.5% on reports of coking coal unit's potential Rs 1,300-crore IPO

Shares of Coal India rose 3.7% to Rs 400.6 apiece to become top Nifty 50 gainer on December 23 as reports said its subsidiary is planning to launch IPO soon. The stock rose for fifth consecutive session.

The PSU firm's unit Bharat Coking Coal (BCCL) is likely to hit the primary market with Rs 1,300-crore IPO within the next two weeks, ET Now reported.

The proposed public issue is expected to be a pure offer for sale, with Coal India planning to offload around 10% of its equity stake in BCCL, according to the report

No fresh shares will be issued, which means the entire proceeds from the IPO will go to Coal India, the report said.

Markets regulator SEBI had cleared BCCL's draft red herring prospectus in September. The DRHP pertains to an offer for sale (OFS) of up to 46.57 crore equity shares by Coal India.

Coking coal is a critical raw material used mainly in steel manufacturing.

So far in 2025, the stock rose 4%.

The proposed IPO of BCCL is part of the government’s broader divestment strategy in the coal sector, aimed at unlocking value in subsidiaries and improving operational transparency through market listing.

The IPO plan came after BCCL paid its maiden dividend of Rs 44.43 crore to CIL.

Established to mine and supply high-grade coking coal, BCCL plays a critical role in powering India's steel sector, which depends heavily on its output.