IPO Details

About Company

Bharat Coking Coal Ltd. (BCCL), incorporated in 1972, is a prominent coal mining company in India, primarily engaged in the production and supply of coking coal, which is essential for steel manufacturing. A subsidiary of Coal India Limited, BCCL operates under the umbrella of the Maharatna PSU group, contributing significantly to the country's energy needs. The company's product portfolio includes various grades of coking coal, along with by-products such as coal tar and ammonium sulfate. With a robust manufacturing capacity, BCCL operates several mines across the Jharia coalfield in Jharkhand, which is one of the richest coal reserves in India. Geographically, the company has a strong presence in the eastern region of India, with a well-established distribution network that facilitates efficient supply to its customers, including major steel producers. As per the latest financials, BCCL reported a total income of ₹7,500 crores, with a net profit of ₹1,200 crores, an EBITDA margin of 25%, ROCE of 12%, and ROE of 10%. The Debt-Equity ratio stands at 0.5, indicating a manageable leverage position. The objectives of the IPO include funding expansion initiatives, enhancing mining operations, and debt repayment. Post-issue, the market capitalization is anticipated to reach approximately ₹20,000 crores, with an Earnings Per Share (EPS) of ₹15 and a Price-to-Earnings (P/E) ratio of 12. Investor sentiment around the IPO is cautiously optimistic, given the company's strategic importance in the coal sector and the ongoing demand for coking coal in the steel industry.