BCCL IPO, Jan. 6 -- The upcoming initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, promises a potential windfall for the Nifty 50 giant.

Valued at Rs.1,071 crore, the BCCL IPO is entirely an offer for sale by its parent company, Coal India, meaning all proceeds from the sale will go directly to the parent, not the subsidiary. As Coal India is looking to offload a 10% stake (46.57 crore shares) in BCCL via the maiden share sale, Mint's calculations show that it will make a Rs.605-crore windfall or 130% return on its investment.

Coal India's weighted average cost of acquisition (WACA) as per the company's red herring prospectus is Rs.10 per share. At the upper end of the price band of Rs.21 to...