State-owned mining giant Coal India Limited (CIL) on Tuesday confirmed that initial public offering (IPO) preparations are underway for two of its wholly owned subsidiaries — Central Mine Planning and Design Institute Limited (CMPDIL) and Bharat Coking Coal Limited (BCCL).
The clarification comes in the wake of widespread media reports speculating imminent draft filings. In a regulatory filing to the stock exchanges, CIL stated, “Activities related to listing of CMPDIL and BCCL are in progress. Through the tendering process, Book Running Lead Managers (BRLMs) have been appointed. The Draft Red Herring Prospectus (DRHP) is under preparation and further updates will be provided once the filing is made in accordance with applicable law.”
The Ministry of Coal has reiterated its commitment to the listings, although the final timeline will depend on prevailing market conditions.
Subsidiaries at a Glance
CMPDIL, a leading coal consultancy firm, posted a 33% year-on-year jump in net profit for FY25 at ₹667 crore. BCCL, engaged in the production of coking coal — a critical input for steel manufacturing — saw its net profit decline 21% YoY to ₹1,240 crore, though this reflects a turnaround from previous years of losses.
In FY25, BCCL recorded its highest-ever quarterly coal production of 11.44 million tonnes (MT) in the March quarter and 4.33 MT in March alone. It also achieved record overburden removal (181.30 million cubic meters) and the second-highest annual coal production of 40.50 MT, despite facing the heaviest rainfall in 50 years.
Strategic Disinvestment
The proposed IPOs are part of the Indian government’s broader disinvestment strategy. In May 2022, CIL’s board granted preliminary approval for the disinvestment of up to 25% stake in BCCL, followed by CMPDIL. However, sources indicate that the entire stake will not be offloaded at once, with a phased approach likely.
The Centre has set a disinvestment and asset monetization target of ₹47,000 crore for FY26, slightly below the ₹50,000 crore target for FY25. The listings of BCCL and CMPDIL are expected to unlock shareholder value and enhance operational transparency.
Industry Outlook
CIL’s move to list its subsidiaries reflects growing investor interest in India’s mining and infrastructure sectors. The developments come at a time when coal demand remains robust, especially in the steel and power sectors, and public sector reforms are gaining momentum.
