Coal India Subsidiaries Eye November RHP Filing for IPOs

Bharat Coking Coal Ltd. and Central Mine Planning and Design Institute Ltd., both subsidiaries of Coal India Ltd., plan to file their red herring prospectuses with the Securities and Exchange Board of India in November, subject to government approvals, Chairman and Managing Director P.M. Prasad said Thursday.

Coal India wholly owns the two companies, which filed their draft red herring prospectuses in May. Bharat Coking Coal will offer 465.7 million shares of face value ₹10 in an offer for sale, while Central Mine will offer 71.4 million shares of face value ₹2.

“The proposed listing is 10-25% of the total value of the subsidiaries,” Prasad said at Coal India’s 51st annual general meeting. He added that roadshows will be conducted over the next two months ahead of the RHP filing.

The government holds a 63.13% stake in Coal India, while entities like Life Insurance Corp. of India own 9.85%. Government approval is required for any decision, including subsidiary listings.

Bharat Coking Coal is one of seven coal-producing subsidiaries of Coal India, focusing on coking coal used in sponge iron. Central Mine provides technical consultancy to Coal India and advisory services to companies such as Steel Authority of India Ltd.