Bharat Coking Coal IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is the largest coking coal producer in India in Fiscal 2025 in terms of coking coal production, which accounted for 58.50% of the domestic coking coal production in Fiscal 2025. Its primary product is coking coal, with an estimated reserve of approximately 7,910 million tonnes, as of April 1, 2024, making it one of the largest coking coal reserve holder in India .It was incorporated in 1972 to mine and supply coking coal concentrated in mines located at Jharia, Jharkhand and Raniganj, West Bengal coalfields. It has expanded its operations significantly over the years, with its coal production increasing from 30.51 million tonnes in Fiscal 2022 to 40.50 million tonnes in Fiscal 2025, which is an increase of 32.74% over Fiscal 2022.

Since Fiscal 2021, it has strategically increased its production by adding capacity through incorporating heavy earth-moving machinery (“HEMM”) as part of its operations. This approach has been effective, as its production trend has been upward since then, achieving a record high in Fiscal 2024. In Fiscal 2024, it  surpassed its previous records of production to produce 39.11 million tonnes of raw coal, recording its highest coking coal production. This highest raw coking coal production in Fiscal 2024 was 10.96% higher than the previous peak recorded in Fiscal 2017.

It operates across a total leasehold area of 288.31 square kilometers, covering 252.88 square kilometers of the Jharia coalfield and covering 35.43 square kilometers of the Raniganj coalfield. Its operational portfolio includes (i) opencast and underground mining projects, (ii) coal washeries; (iii) monetisation of old and idle coal washeries through the Washery Developer and Operator (“WDO”) route; and (iv) restoration of operations in discontinued underground mines through the Mine Developer and Operator (“MDO”) model. In addition, it monetizes its solar power projects through a combination of self-consumption and grid injection. As of September 30, 2025, it operates a network of 34 operational mines, including 4 underground mines, 26 opencast mines, and 4 mixed mines.

The company supply raw coal to various industries such as power, steel and fertilizer industries, and also use its raw coal in its washeries for beneficiating the coal to produce washed coking coal and other by-products.

IPO Details:

Objectives of Issue:

Since the entire issue is offer for sale , company will not receive any proceeds from issue

Key Strengths:

• Strategically located mines with large washeries- Its mines are strategically located in the Jharia and Raniganj coalfields, which have a vast reserve of coal resources. It is a market leader in coking coal washery capacity in India, with an owned operational capacity of 13.65 million tonnes per annum. Its strategically located mines and large washeries represent a significant competitive advantage that enhances operational efficiency, reduces costs, and ensures high-quality coal production. Its mines in Jharia and Raniganj coalfields are situated in regions with well-developed infrastructure and logistical networks. This geographical advantage minimizes transportation costs and time, as the mines are often located near major transportation routes, including railways and highways.
• Well positioned to capitalize on demand for coking coal in India – The demand for coking coal in India stands at 67 million metric tonnes in Fiscal 2025 and is expected to reach 138 million metric tonnes by Fiscal 2035. The demand for coking coal in India is expected to rise substantially, driven by the growth of the steel and power industries. It is well positioned to capitalize on demand for coking coal in India since the demand for coking coal in India is expected to rise, driven by the steel industry’s growth. Its large resource base strengthens its position as a major player in the Indian coking coal industry, making it less vulnerable to resource depletion. In addition, the strategic location of its mines in the Jharia coalfields, which are rich in prime coking coal allows for efficient extraction and supply. Its ability to meet the rising demand for coking coal is further enhanced by its well-developed infrastructure, including coal mines, transport facilities, and evacuation facilities.
• Strong parentage of Coal India Limited - Its relationship with Coal India Limited provides it with a solid foundation and extensive resources that are pivotal to its success. It benefit significantly from their strategic support and vast resources. This includes access to advanced technologies, a pool of skilled professionals, and robust financial backing. These resources enable it to undertake large-scale projects with confidence, ensuring timely and efficient execution. Its ability to leverage these assets sets it apart from its competitors and positions it for continued success. It leverages the technical expertise in coal mining, resource management, and environmental sustainability that Coal India Limited has cultivated over the years. The legacy of Coal India Limited ensures that it remains at the forefront of industry standards, delivering the highest standard of coking coal to its customers. Additionally, it also receive consistent support from Coal India Limited’s subsidiary, CMPDIL, which plays a pivotal role in coal exploration and research and development.

Risks:

• Concentrated Mines – As of September 30, 2025, it operates a network of 34 operational mines, including 4 underground mines, 26 opencast mines, and 4 mixed mines. Its operations are entirely concentrated in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal, which are critical sources of its coal production. This geographic concentration exposes it to significant risks, including the potential depletion of coal reserves in these regions. The coal reserves in these regions are finite and may eventually be depleted. The exhaustion of coal reserves in Jharia, Jharkhand and Raniganj, West Bengal could materially and adversely affect its business, results of operations, financial condition, and cash flows.
• Dependency on the Top 10 customers - The company is  dependent on its ten largest customer groups, which comprise a significant portion of its revenue from operations (83.89% for the six months period ended September 30, 2025,88.88% for the Financial Year 2025, 80.79% for the Financial Year 2024 and 83.1% for the Financial Year 2023). Any failure to maintain its relationship with these customer groups or any adverse changes affecting their financial condition will have an adverse effect on its business, results of operations, financial condition and cash flows.
• Influence of New Coal Distribution Policy - The distribution and allocation of coal among its customers is regulated by the Government of India under the New Coal Distribution Policy (“NCDP”), which was introduced in 2007 to enhance transparency and streamline coal allocation across various sectors. As a subsidiary of CIL, its operations are significantly influenced by this policy framework. This regulatory environment, which includes Fuel Supply Agreements (“FSAs”) with consumers in both power and non-power sectors, supply to small and medium consumers through State Nominated Agencies (“SNAs”). This policy framework poses risks to its ability to optimize pricing and supply agreements, potentially impacting its financial performance and market competitiveness. The auction-based system and fixed pricing mechanisms may restrict ITS ability to adjust prices in response to market conditions, leading to potential revenue losses and lower profit margins.
• Dependent on Power and Steel Industries - It rely significantly on the performance of industries such as the power and steel industries for its business as majority of its coal is dispatched to these industries. More than 90% of revenue is generated from supply to power and steel industries. Any negative developments in these sectors could lead to reduced demand for its products, increased operational costs, and challenges in maintaining its revenue levels, thereby impacting its overall financial stability.

Financial Snapshot:

Conclusion

The growth trajectory of both coal and coking coal has remained moderate over the past three years. The increasing adoption of renewable energy and clean energy sources has led to a gradual slowdown in overall coal usage. However, coking coal continues to remain a critical energy input, particularly due to its indispensable role in steel manufacturing.

The company does not have any directly listed peers in India. However, when its operations are compared with its parent company, Coal India, the company has demonstrated better revenue growth, albeit with relatively lower margins. On the operational efficiency front, the company’s asset turnover and fixed asset turnover ratios are superior to Coal India, indicating more efficient utilization of assets.

Given the absence of listed peers, a conventional P/E and P/B-based peer comparison is not feasible. That said, when benchmarked against Coal India, the company is available at a significantly lower P/B multiple, which provides a degree of valuation comfort.

Overall, the issue may be suitable for investors seeking listing gains, while risk-averse, long-term investors looking for stable and gradual wealth creation may also consider subscribing to the company for the long term

IPO Allotment

Find out the allotment status for the Bharat Coking Coal IPO by checking the MUFG Intime India IPO Application Status page.