Coal India Shares Heat Up on IPO Buzz for Two Arms

Coal India’s stock has fired up after reports suggested that company has already started the process for listing two of its subsidiaries. The stock zoomed as much as 4% on the National Stock Exchange to touch its intraday high of Rs 417.25, which is also its year-to-date high. However, the stock has lost over 11% in the last one year.

The process of listing two subsidiaries—Bharat Coking Coal and Central Mine Planning and Design Institute—has begun, and draft red herring prospectus will be filed soon with the Securities and Exchange Board of India. The coal ministry had earlier said that the timing for listing of both firms will depend on market conditions.

The state-owned miner has seven coal-producing subsidiaries and one technical and consultancy company. Coal India accounts for over 80% of the domestic coal production. According to reports the company has already appointed book running lead managers. Coal India is working on critical minerals both in India and abroad. With regards to critical mineral projects overseas, the company is looking at South America, Australia and Africa, reports cited Director of Business Development Debasish Nanda, as saying.

Coal India’s consolidated net profit for the March quarter came in at Rs 9,592.53 crore, up 12.5% from the year-ago quarter. However, the miner’s consolidated revenue for the quarter fell over 1% on year to Rs 37,824.54 crore. Its earnings before interest, tax, depreciation, and amortisation grew 4% on year for the quarter under review.

During FY25, Coal India produced 781.1 million tonnes of coal, nearly 7% less than the company's target for the full year. The company is now targeting a production of 875 million tonnes and an offtake of 900 million tonnes in FY26.

Increasing acceptability of coal as a dominant fuel mix and good volume delivery in the past few quarters, along with better evacuation infrastructure in terms of first-mile connectivity projects could prove beneficial for the state-owned miner, Elara Securities had said in its earnings review report.