Bharat Coking Coal IPO Attracts Massive Investor Interest
The first mainboard initial public offering of the year has made a powerful start. Bharat Coking Coal Limited, a subsidiary of Coal India, witnessed overwhelming investor enthusiasm during its IPO bidding period.
Record-Breaking Subscription Numbers
The BCCL IPO opened for bidding on Friday, January 9 and concluded today, January 13. Investors demonstrated remarkable confidence in the offering, subscribing it over 146 times.
Breaking down the subscription figures reveals even more impressive details. The qualified institutional buyer segment showed extraordinary interest, getting booked 310.81 times. Non-institutional investors followed closely with 258.02 times bids. Retail investors participated actively too, subscribing the retail portion 49.25 times.
Employee and shareholder quotas also saw substantial demand. The employee quota received 5.17 times bids while the shareholder quota garnered 87.20 times subscription.
Strong Grey Market Performance
The grey market premium for BCCL shares indicates positive market sentiment. According to current data, the BCCL IPO GMP stands at ₹10 today. This means shares are trading ₹10 above the upper price band of ₹23, representing a premium of 43.48%.
The grey market premium has shown volatility during the bidding period. It reached a high of ₹16.25 and touched a low of ₹9.25 at different points.
IPO Details and Company Background
Bharat Coking Coal launched a ₹1,071.11-crore IPO entirely as an offer for sale by its promoter Coal India. All proceeds from this share sale will go directly to the Maharatna public sector undertaking rather than the company itself.
The company stated in its prospectus that the listing would help achieve the benefits of being a publicly traded entity. The price band was fixed at ₹21-23 per share, with a lot size of 600 shares for each application.
Established in 1972, Bharat Coking Coal primarily mines and supplies coking coal across India. The company holds estimated reserves of 7.91 billion tonnes as of April 2024, positioning it among the largest coking coal reserve holders in the country.
BCCL produces a comprehensive range of coking coal, non-coking coal, and washed coal to meet requirements of both steel and power sectors. The company operates 34 mines across 288.3 square kilometers in Jharia, Jharkhand and Raniganj, West Bengal coalfields.
These mining operations include four underground mines, 26 opencast mines, and four mixed mines. In the financial year 2025, these facilities accounted for 58.5% of India's domestic coking coal production.
Next Steps for Investors
Investors can expect the allotment for BCCL IPO to be finalized on Wednesday, January 14. Following this, shares of the company will list on both BSE and NSE exchanges.
Disclaimer: This information serves educational purposes only. We strongly advise investors to consult certified financial experts before making any investment decisions.
