Bharat Coking Coal IPO Set for Stock Market Debut on Monday
Investors now turn their attention to the listing date after the successful allotment of the Bharat Coking Coal initial public offering. The company's shares will make their stock market debut this coming Monday, January 19. This marks a significant moment for the coal producer as it enters the public markets.
Record-Breaking Investor Response
The Bharat Coking Coal IPO received a phenomenal response from investors across all categories during its subscription period. Data from the National Stock Exchange reveals overwhelming demand, with the overall subscription reaching an impressive 146.87 times.
By the close of the third and final bidding day, specific segments showed particularly strong interest:
- The Qualified Institutional Buyers portion was subscribed 310.81 times
- The Non-Institutional Investors segment received bids 258.16 times
- The retail category closed at 49.33 times subscription
Demand in other segments remained equally solid. The employee segment garnered 5.18 times subscription, while the shareholder segment saw 87.29 times subscription. Overall, this ₹1,071-crore issue attracted bids totaling nearly ₹1.17 lakh crore, demonstrating massive investor confidence.
Strong Grey Market Premium Indicates Positive Sentiment
Ahead of Monday's listing, the Bharat Coking Coal IPO commands a strong premium in the grey market. According to Investorgain, the shares were trading at a premium of ₹13.2. This means the Grey Market Premium for the Bharat Coking Coal IPO stands at +13.2.
The estimated listing price of the Bharat Coking Coal IPO is likely to be ₹36.2. This represents a substantial 57.39% increase over the IPO's upper price band of ₹23 per share. Grey market premium serves as an important indicator of primary market investors' willingness to invest in a public issue.
IPO Details and Structure
The public issue remained open for subscription from January 9 to January 13. The allotment process was finalized on January 14, with shares scheduled to list on both the Bombay Stock Exchange and National Stock Exchange this Monday.
This book-built issue aggregates ₹1,071.11 crore and comprises entirely an offer for sale of 46.57 crore shares. The price band has been fixed at ₹23 per share. Investors could apply in lots of 600 shares, with the minimum investment for retail applicants pegged at ₹13,800 based on the upper end of the price band.
Notably, the issue represents a pure offer for sale by its promoter, Coal India. This means the entire proceeds from the share sale will go to the Maharatna public sector undertaking rather than to the company itself. The company stated in its prospectus that the IPO aims to unlock the advantages of being a listed entity.
IDBI Capital Markets Services Ltd. acted as the book-running lead manager for the issue, while Kfin Technologies Ltd. served as the registrar.
About Bharat Coking Coal Limited
Bharat Coking Coal Ltd stands as India's largest coking coal producer in FY2025, contributing approximately 58.5% of the nation's domestic coking coal output during the year. Coking coal represents the company's core product, supported by estimated reserves of around 7,910 million tonnes as of April 1, 2024. This places BCCL among the biggest holders of coking coal reserves in the country.
The company produces multiple grades of coking coal, along with non-coking coal and washed coal. Its products primarily cater to the steel and power sectors. A wholly owned subsidiary of Coal India Limited, BCCL received Mini Ratna status in 2014. Incorporated in 1972, the company engages in mining and supplying coking coal from its operations in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.
Disclaimer: This story serves educational purposes only. Please consult with an investment advisor before making any investment decisions.
