IPO: Coal India prepares DRHP for listing of BCCL & CMPDIL

New Delhi: State-run Coal India Limited (CIL) said on Tuesday that Draft Red Herring Prospectus (DRHP) is currently under preparation for the listing of two of its subsidiaries — Central Mine Planning and Design Institute Limited (CMPDIL) and Bharat Coking Coal Limited (BCCL). The confirmation comes a day after several media reports said that Coal India subsidiaries were set to file draft papers for public offer soon.

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“In respect of Media reports on “Upcoming IPOs of two Wholly owned Subsidiaries of Coal India Limited” as appearing in some of the electronic media, it is clarified that “Activities related to listing of CMPDIL and BCCL, wholly owned subsidiaries of CIL are in progress. Through tendering process, BRLMs (Book Running Lead Managers) have been appointed. DRHP is under preparation and further update will be provided once filing is made in accordance with applicable law,” the coal miner told the stock exchanges on Tuesday.

The Coal Ministry had said that the two CIL subsidiaries will definitely be listed but the timing of the listing will depend on market conditions.

Listing of CIL subsidiaries: CMPDIL & BCCL

CMPDIL provides consultancy and planning services for coal exploration and mine design, while BCCL is engaged in coking coal mining, essential for steel production. In FY2024-25, CMPDIL posted a 33 percent rise in net profit year-on-year at Rs 667 crore. BCCL, on the other hand, reported a 21 percent decline in net profit year-on-year for FY25 at Rs 1,240 crore.

However, BCCL’s performance must be looked at keeping in mind that it has recently turned its performance around and started registering profits. BCCL had been making losses until the end of FY2022-23. In FY2024-25, BCCL recorded its highest-ever coal production 2025 since inception in the March quarter at 11.44 Million Tonnes (MT) and 4.33 MT in March 2025. The company also recorded its highest-ever overburden removal (181.30 million cubic meters) and second-highest annual coal production (40.50 million tonnes), despite facing the heaviest rainfall in 50 years (1,747 mm). Offtake reached the second-highest-ever 38.25 MT, bolstered by a 6 percent growth in rail dispatch, even with high coal stocks at powerhouses.

In May 2022, Coal India informed the stock exchanges that following the Ministry of Coal’s guidance, the board of the public sector mining company had granted preliminary approval for the divestment of up to 25 percent of BCCL’s paid-up share capital, which is held by Coal India. Subsequently, BCCL was to be listed on the stock exchanges followed by CMPDIL. However, sources said that the government will test the waters first and the entire 25 percent stake will not be offloaded in one go. The listing of these two subsidiaries will unlock value for Coal India.

The proposed listings are part of a broader push to unlock value from government-owned enterprises. The Centre has set a disinvestment and asset monetisation target of Rs 47,000 crore for FY2025-26, slightly lower than the Rs 50,000 crore target for the previous year.

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