Coal India Shares Rise 3.5% as Subsidiary Bharat Coking Coal Plans ₹1,300 Crore IPO

New Delhi: Shares of Coal India Ltd. climbed about 3.5 per cent on Tuesday, with the stock trading near ₹400, as optimism grew over the planned ₹1,300 crore initial public offering (IPO) of its wholly owned subsidiary, Bharat Coking Coal Ltd. (BCCL). Investors responded positively to the news of the anticipated IPO, which is expected to unlock value and strengthen the parent company’s market appeal, lifting Coal India’s share price toward recent multi-week highs.

BCCL’s proposed IPO is likely to be structured as a pure offer for sale, with Coal India divesting approximately 10 per cent of its equity stake through the listing. Reports indicate that the public issue could hit the primary market within the next two weeks, marking one of the early state-owned offerings expected to kick off India’s IPO calendar for 2026.

Bharat Coking Coal, a key producer of coking coal — a vital raw material for steel manufacturing — holds significant operational importance within India’s energy and industrial ecosystem. Market participants view the IPO as a strategic move to unlock hidden value in the subsidiary and bring enhanced transparency and wider investor participation to the business.

Coal India shares have been trading in an uptrend, supported by broader investor interest in public sector undertakings and expectations of enhanced corporate actions, including subsidiary listings and asset monetisation initiatives.