Coal news and updates

Coal India gets Finmin nod to list arms BCCL and CMPDI

State-owned Coal India is in the process of appointing a consultant to proceed with the listing of its subsidiaries – Bharat Coking Coal Limited (BBCL) and the Central Mine Planning and Design Institute (CMPDI), the company’s Chairman and Managing Director P.M. Prasad told FE.

The Chairman informed that the listing of both the companies has been cleared by the Department of Investment and Public Asset Management and the coal ministry and the initial public offering for the companies will hit the market when the conditions are right. 

“The proposal (for listing of subsidiaries) is on the cards. Listing of both these companies has already been cleared by DIPAM and the Ministry of Coal. We are in the process of appointing a consultant to carry out the requisite procedures prior to the listing like splitting of the shares, valuation of the market price etc,” Prasad said. “The timing shall depend on the market conditions and requirement of infusion of equity in the upcoming diversification projects.”

The discussions about CIL listing its subsidiaries have been making rounds in the market for quite some time. FE had earlier reported that the company is likely to come out with the initial public offer for its two subsidiaries BCCL and CMPDI in the financial year 2024-25, according to sources.

Back in 2022, the company had said that its board had given an ‘in-principle’ approval to the divestment of 25% of paid-up share capital of BCCL and its subsequent listing on the stock exchanges. However, the subsidiary has so far not been listed. 

During 2022-23, BCCL reported an annual profit after tax of Rs 645.01 crore against Rs 111.62 crore in 2021-22. CMPDI too reported a net profit of Rs 296.66 crore in FY23 compared with Rs 282.12 crore in FY22.

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The net worth of BCCL stood at Rs 3,771.24 crore as on March 31, 2023, the company said in its annual report for FY23. CMPDI’s net worth as on March 31, 2023 stood at Rs 1,217.65 crore.

BCCL produces the bulk of coking coal mined in the country meeting 50% of the total requirement of this key input for the steel industry. CMPDI, headquartered in Ranchi, is Coal India’s consultancy firm that provides research and support for mineral exploration, mining and infrastructure engineering, among others.