Mumbai: Coal India Ltd (CIL) has filed the Draft Red Herring Prospectus (DRHP) for the initial public offering (IPO) of its wholly owned subsidiary, Bharat Coking Coal Ltd (BCCL). The DRHP has been submitted to market regulator SEBI and stock exchanges BSE and NSE.
The proposed IPO will be a pure offer for sale (OFS) of up to 46.57 crore equity shares. These shares will be sold by Coal India. There will be no fresh issue of shares. As a result, all the money raised will go to the parent company, Coal India. Key details such as the price band and lot size for bidding will be revealed later. These will be decided in consultation with the book-running lead managers.
BCCL is one of the major coal-producing subsidiaries of Coal India, with a focus on coking coal, which is used in the steel industry.
This move comes just a week after another Coal India subsidiary, Central Mine Planning & Design Institute Limited (CMPDI), also filed its DRHP for an IPO. CMPDI’s proposed IPO will involve an OFS of 7.14 crore equity shares by Coal India. Like BCCL’s offering, this issue will also not include any fresh share issuance.
If the IPOs receive the necessary approvals, both BCCL and CMPDI will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Listing on the exchanges will not only increase their visibility in the market but could also lead to improved operational independence.
These listings are a part of Coal India’s larger plan to unlock value from its subsidiaries. They also give investors a chance to tap into India’s growing coal, energy, and consultancy sectors.
