Market condition rider for BCCL, CMPDI listing

Kolkata, Feb 19 (PTI) The coal ministry on Wednesday said that the listing of Coal India Ltd subsidiaries Bharat Coking Coal Limited (BCCL) and the Central Mine Planning and Design Institute (CMPDI) will take place, but the timing will depend on market conditions.

The current deep correction in the market and the relentless outflow of foreign investors may keep Indian equities under pressure, posing a hurdle for the ministry's listing plans.

"We are planning to list BCCL and CMPDI. 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," Union Coal Secretary Vikram Dev Dutt said on the sidelines of a roadshow on the commercial coal mine auction, which saw participation from around 70 companies.

DRHP is a preliminary document that a company files with the market regulator SEBI for a public offer.

"We are firm about listing these two subsidiaries except timing," he said.

Coal India has seven coal-producing subsidiaries and one technical and consultancy company.

Both subsidiaries posted profits in FY'24 and the first nine months of the current fiscal.

CMPDI's net profit for the nine months ended December 2024 rose 40 per cent to Rs 390 crore, while BCCL's year-on-year profit declined 14 per cent to Rs 1,174 crore during the same period.

According to available data, BCCL in 2023-24 reported a profit after tax of Rs 1,564.46 crore, more than double the Rs 664.78 crore recorded in the previous year.

CMPDI's profit after tax stood at Rs 503.23 crore, marking a 70 per cent increase over FY'23.

Coal India had earlier indicated that CMPDI may be listed first. Both Coal India and the government have given "in-principle" approval for the listings. PTI BSM SBN SBN

Source: PTI