Draft Red Herring Prospectus (DRHP) Filing India Limited (CIL) is set to submit draft papers for the initial public offerings (IPOs) of two of its subsidiaries- Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI)

Draft Papers for IPOs of Two Coal India Subsidiaries to Be Filed Soon

Draft Red Herring Prospectus (DRHP) Filing India Limited (CIL) is set to submit draft papers for the initial public offerings (IPOs) of two of its subsidiaries- Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI)- shortly under the Securities and Exchange Board of India (SEBI). Just appointed is the Book Running Lead Manager (BRLM) for the IPOs.

Timing of IPO Dependent on Market Conditions

While the coal ministry has verified the intended listings, the timing of the actual IPO will depend on the state of the market right now. Both BCCL and CMPDI are vital weapons of Coal India since almost 80% of coal output comes from both of them.

Plans of diversification and expansion for CIL

With an eye toward regions including South America, Australia, and Africa, CIL is aggressively looking for critical mineral projects both here and overseas. Apart from developing pithead power plants, including a 1,600 MW Odisha project with an estimated cost of ₹16,000 crore, the company is advancing three coal gasification projects. Another such power project under development in collaboration with Damodar Valley Corporation (DVC) through a 50:50 joint venture.

Financial Performance and Targeting Capex

Driven by more income, CIL reported a 12% year-on-year rise in consolidated net profit for the quarter ended March 2025, coming to ₹9,604.02 crore. Over the January–March period, the company's whole income came to ₹41,761.76 crore. CIL has set targeted capital expenditure for the current financial year at ₹17,000 crore.

Coal Production and Target Aimed Levels for FY 2025-26

At 62.1 million tonnes, CIL's coal output in April remained almost flat compared to the previous year. Roughly 7% below the target, total production for the financial years 2024–25 was 781.1 million tonnes. The company projects an offtake of 900 million tonnes and a production of 875 million tonnes in the fiscal year 2025–26.

Strategic Horizon

Coal India's forthcoming IPOs, foray into critical minerals, and continuous coal gasification and power generation investments underline its strategic attempts to diversify its business and strengthen its position in the evolving energy sector.

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