Coal India Limited has filed the red herring prospectus for its wholly owned subsidiary Bharat Coking Coal Limited (BCCL) with the Securities and Exchange Board of India (SEBI), marking a significant step toward the proposed initial public offering of the coking coal specialist.

IPO Structure and Share Offering

The proposed IPO comprises an offer for sale structure, with Coal India Limited planning to divest its stake in the subsidiary. The key details of the offering are outlined below:

Regulatory Compliance and Filing Details

The red herring prospectus dated January 2, 2026, was filed with multiple regulatory bodies and stock exchanges to ensure comprehensive compliance. Coal India Limited submitted the document to SEBI, Bombay Stock Exchange (BSE), and National Stock Exchange of India simultaneously on January 3, 2026.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material events and corporate developments. The company emphasized that this disclosure serves the purpose of disseminating material information and ensuring regulatory compliance.

Stock Exchange Response and Volume Movement

Following the RHP filing announcement, Coal India's equity shares experienced significant volume movement across exchanges. The Bombay Stock Exchange sought clarification from the company regarding this increased trading activity on January 5, 2026.

Coal India responded that the volume increase was directly related to the BCCL IPO disclosure and confirmed its commitment to continue complying with all applicable disclosure requirements.

Conditional Nature of the Offering

The proposed IPO remains subject to several important conditions that must be fulfilled before the public offering can proceed:

• Receipt of applicable regulatory approvals
• Favorable market conditions
• Other relevant business and regulatory considerations

These conditions reflect the standard requirements for public offerings in the Indian capital markets, where companies must navigate regulatory approvals and market timing considerations.

About Bharat Coking Coal Limited

Bharat Coking Coal Limited operates as a wholly owned subsidiary of Coal India Limited, specializing in coking coal operations. The subsidiary's IPO represents Coal India's strategy to unlock value from its subsidiary operations through public market participation.

The filing of the RHP marks the formal beginning of the IPO process, with subsequent steps including SEBI review, price discovery, and eventual listing subject to regulatory approvals and market conditions.

Coal India shares rallied to a fresh 52-week high on Friday, surging as much as 7.00% during the trading session after the state-run miner officially confirmed implementation of its landmark policy allowing direct foreign buyer participation in e-auctions. The stock emerged as the top gainer on the Nifty 50 index, reflecting strong investor optimism around potential market expansion and improved price discovery.

Market Performance and Trading Activity

The stock touched a new 52-week high of ₹426.95 during the session, with shares gaining 6.60% from the previous session's close. The sharp rally made Coal India the top performer among Nifty 50 constituents as investors responded positively to the policy implementation.

Official Policy Confirmation and Regulatory Compliance

Coal India officially announced that buyers from neighbouring nations Bangladesh, Bhutan, and Nepal can now join its online coal auctions directly, eliminating the need for Indian middlemen. The move aims to better utilise surplus coal resources and promote transparency in the auction process. The company filed an official intimation under Regulation 30(11) of SEBI regulations acknowledging the material price movement in its shares following the press release titled "CIL permits direct participation of foreign coal buyers in e-auction."

SWMA Auction System and Operational Structure

The Single Window Mode Agnostic (SWMA) auction is a unified, simplified e-auction system launched in 2022 to replace multiple existing auction windows including Spot, Special Spot, and Forward auctions into one single platform. This system makes coal procurement easier, transparent, and market-driven for all buyers. Under the revised framework, foreign buyers can now participate alongside domestic buyers through digital bidding processes.

Payment Framework and Regulatory Compliance

The payment structure has been designed in accordance with Foreign Exchange Management Act (FEMA) regulations to ensure transparency. Under the framework, buyers from Nepal can pay in Indian Rupees or US Dollars, while buyers from Bangladesh and Bhutan must transact in US Dollars only, with values converted to Indian Rupees. All transactions require advance electronic payments through the digital platform.

Strategic Market Expansion Impact

According to a senior company official, "Opening SWMA e-auctions to foreign buyers reflects CIL's calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration." The company previously held dialogues with prospective overseas coal consumers to frame enabling clauses and assess their coal requirements, setting the foundation for this strategic policy implementation.

Recent Business Performance Context

Coal India recently disclosed mixed operational results in its December business update. Production increased by 4.00% compared to the previous year, while offtake declined by 5.00%. On a year-to-date basis for the current financial year, the company's total output stood at 529 MT, representing a 2.20% decline from the previous year and achieving 60.00% of the full-year target of 875 MT.

Investors appear to be factoring in the potential for incremental volumes and improved realizations as Coal India integrates more closely with regional coal markets through this direct access mechanism.