New Delhi: State-owned mining major Coal India Limited (CIL) has issued an official clarification to stock exchanges after a sharp movement in its share price, stating that media reports claiming Bharat Coking Coal Limited (BCCL) would use IPO funds to diversify into rare earth metals are factually incorrect.
Clarification Issued After Market Reaction
In a regulatory filing made under Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, Coal India said it observed a material price movement (MPM) in its shares on January 12, 2026. The movement followed the publication of a media report titled “Fund from IPO will help Bharat Coking Coal Limited diversify into rare earth metals.”
Coal India clarified that while BCCL has initiated an Offer for Sale (OFS), the proceeds from the issue will entirely accrue to Coal India Limited, the holding company, and not to BCCL.
No Diversification into Rare Earths by BCCL
The company categorically stated that the IPO/OFS proceeds are not intended for diversification into rare earth metals, contrary to claims made in the media report. Coal India emphasized that no such plan has been proposed or approved for BCCL using the OFS proceeds.
“This is for the information and record of investors,” Coal India said in its stock exchange disclosure, reiterating its commitment to transparent and timely communication with the market.
Investor Communication and Regulatory Compliance
Coal India said the clarification was issued to ensure that investors are not misled by speculative or inaccurate information and to maintain compliance with regulatory disclosure norms. The company underscored that accurate information dissemination is critical, especially when market-sensitive news leads to volatility in share prices.
About Coal India Limited
Coal India Limited is a Maharatna public sector undertaking and the world’s largest coal producer. The company plays a pivotal role in ensuring India’s energy security by supplying coal to key sectors such as power, steel and cement, and operates through multiple subsidiaries across the country.
About Bharat Coking Coal Limited (BCCL)
Bharat Coking Coal Limited is a wholly owned subsidiary of Coal India Limited and a major producer of coking coal, primarily catering to the steel sector. BCCL’s operations are largely concentrated in Jharkhand, and any proceeds from its Offer for Sale accrue to Coal India as the parent company.
