- 25 Jun 2024
- ICICI Securities
COAL INDIA RECEIVED APPROVAL FROM GOVERNMENT TO LIST ITS SUBSIDIARIES
COALINDIA - 397 Change: 4.00 (1.02 %)News: As per media sources, Coal India is in the process of appointing a consultant to facilitate the listing of its subsidiaries, Bharat Coking Coal Limited (BBCL) and the Central Mine Planning and Design Institute (CMPDI). The company has announced that the listing has been approved by the Department of Investment and Public Asset Management and the coal ministry, and the initial public offering will be launched when the market conditions are favourable.
Views: This development is positive for Coal India as listing the subsidiaries will significantly unlock value for the company. BCCL is a major producer of coking coal in the country, supplying to the steel industry for this essential input. CMPDI, headquartered in Ranchi, serves as Coal India's consultancy firm, providing expertise in mineral exploration, mining and infrastructure engineering, among others. Listing these subsidiaries will allow Coal India to streamline its focus on core operations while enabling the newly listed entities to operate with great autonomy and efficiency. We maintain a positive view on Coal India, driven by the company’s ambitious goal of achieving 1000 MT of coal production by FY26, investments in new technology domains such as coal gasification, inexpensive valuation, and healthy dividend yield.
Impact: Positive