India’s ministry of coal will not push for an early initial public offer (IPO) and subsequent listing of shares of Bharat Coking Coal Limited (BCCL), a wholly-owned operational subsidiary of government-run Coal India Limited (CIL) and the largest domestic coking coal miner, government officials said on Thursday, February 27.
The current deep correction in the equities market and the relentless outflow of foreign investors may keep Indian equities under pressure, posing a hurdle for the ministry's listing plans, the officials said.
“We are planning to list BCCL and the process is at an advanced stage. Preparatory work for the draft red herring prospectus (DRHP) is on. But it is difficult to say when the listing is expected as it depends on market conditions,” one official said.
“The government is firm about floatation of equity of BCCL and the subsequent listing. What is not clear is the timing of these moves,” he said.
BCCL, the largest coking coal producer and supplier to domestic steel companies, achieved production of 41.1 million mt in the fiscal year 2023-24 and has set an output target of 100 million mt per year by 2029-30, in line with government’s target of 300 million mt per year steel output by then.