10 Things to Know Before You Apply for the BCCL (Bharat Coking Coal) IPO

Bharat Coking Coal Limited (BCCL) is India’s biggest maker of coking coal - coal that steel plants need - and the big topic right now is its upcoming IPO and the risks people are debating. The IPO is a book-built issue priced in a ₹21-₹23 band, sized at about ₹1,071 crore, opening on Jan 9, 2026, and closing on Jan 13, 2026 (with a tentative listing on Jan 16, 2026).

This blog breaks down the biggest issues investors are discussing, like “no fresh funds,” earnings ups and downs, customer concentration, and operational risks, so an investor can judge the opportunity with clear eyes.

Key ​IPO Details

Source: RHP, Chittorgarh

1) The core business is strategic: coking coal is tied to steel

BCCL is described as the largest domestic coking coal producer, with 58.50% share of India’s domestic coking coal production in FY25. If India’s steel production grows, demand for coking coal generally rises too, so many investors see this as a “steel growth” linked story rather than just a generic coal company story.

2) Financial performance is volatile

BCCL is profitable, but the recent numbers show big ups and downs. In the first half of FY26, operating revenue was ₹5,659 crore versus ₹6,846 crore in the same period last year (a fall of about 17%). In the same six months, net profit fell to about ₹124 crore versus ₹749 crore last year’s first half (a drop of over 80%). This is why many investors are discussing “weather risk,” because heavy rainfall can disrupt mining and coal movement, and that can hit sales and profits.

3) ​Coal washing expansion

BCCL is expanding coal washing because Indian coking coal often has high ash, and washing improves usable quality for steel plants. Based on the RHP, it runs 5 washeries with 13.65 MTPA capacity and is adding 3 more, Patherdih-II, Bhojudih, and Moonidih, adding 7 MTPA. What to track gently: whether washery utilisation improves and whether washed coal volumes rise, because that supports a better quality supply.

4) Too much dependence on a few buyers

BCCL’s sales are concentrated in a small set of large customers, mostly PSUs. As per the company, the top 10 customers contributed 88.88% of revenue in FY25 and 83.89% in H1 FY26, with names like SAIL, NTPC, and DVC. What to keep an eye on: any change in purchase volumes or tender terms by these big buyers, because a small policy shift can impact revenue quickly.

5) Possible future surprise bills

Contingent liabilities are possible future payments, usually from tax disputes, legal cases, or arbitration, that may or may not become actual cash outgo. The RHP shows contingent liabilities were ₹3,598.59 crore as of Sept 30, 2025 (around 25% of FY25 revenue). What to track: the nature of major disputes and whether any big item turns payable, because that can reduce future cash flows and reported profits.

6) ​MDO model for discontinued mines

To restart production from discontinued underground mines without running everything in-house, BCCL is using the MDO model (Mine Developer and Operator), where a private operator develops/operates and BCCL shares revenue. As per the RHP, 6 of 10 identified mines have been awarded, and production started at PB Project Colliery in July 2025. What to track: whether the ramp-up meets timelines and volumes, since that decides real output gains.

7) Operations are concentrated in two coalfields

BCCL’s operations are concentrated in Jharia (Jharkhand) and Raniganj (West Bengal), and it operates 34 operational mines as of Sep 30, 2025. Concentration can be efficient, but it can also increase risk if that region faces heavy rain, transport bottlenecks, regulatory restrictions, or local disruptions.

8) IPO is happening in a policy-heavy sector

Coal is not a “pure free-market” product in India; it is closely connected to policy goals like energy security, import reduction, and industrial supply chains. That policy link can be supportive in some periods, but it also means business decisions can be influenced by national priorities, not just minority shareholder returns.

9) Manpower-heavy business

Mining is manpower-heavy, and wage costs matter a lot in PSUs. For BCCL, employee benefit expenses constituted a massive 51.52% of total expenses in FY25 and 49.70% in the first half of FY26. This is why it's important to watch staff strength, wage revisions, and whether the company can gradually improve productivity without affecting safety or operations. Even a small negative change (like a wage hike without matching output growth) can press margins when coal prices or volumes are not rising strongly.

​10) It’s an OFS: the company gets no money

This IPO is fully an Offer for Sale (OFS), which simply means Coal India Limited (promoter of the BCCL) is selling part of its holding, and the IPO money goes to Coal India, not to BCCL. So, it’s worth remembering that BCCL will not get fresh funds from this issue to directly pay for expansion, new projects, or upgrades. If BCCL needs money for future capex (new mines/washeries) or large improvements, it would have to rely on internal cash generation or other funding routes, not this IPO.

​For detailed information, visit Bharat Coking Coal’s official IPO page at INDmoney.

​Final Take

BCCL’s IPO is getting attention because it’s a strategic coking-coal player coming to market, but the issue is fully an OFS, so the company is not receiving fresh funds from the IPO. The business has scale (including 34 operational mines and a major role in domestic coking coal supply), but investors are also focused on earnings volatility, operational concentration, and the usual mining-sector risks. A balanced way to approach it is to treat it like a “core-industry” listing: read the RHP carefully, match the risks to personal risk tolerance, and avoid assuming that leadership in market share automatically means stable profits every year.

For more IPOs, visit INDmoney’s IPO tracker.

​Disclaimer

Source: Bharat Coking Coal's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.