The initial public offering (IPO) of Bharat Coking Coal Ltd (BCCL) witnessed a spectacular opening on Friday, with investors rushing to subscribe the moment the bidding window opened. The issue was fully subscribed within minutes, highlighting the robust appetite for the public sector enterprise.
Record-Breaking Subscription Numbers
According to data from the National Stock Exchange (NSE) until 11:15 am, the demand far outstripped the supply. Bids were placed for a staggering 84,15,46,800 shares against the total issue size of 34,69,46,500 shares. This resulted in an overall subscription of 2.43 times the shares on offer.
The interest was not uniform across investor categories. The segment for non-institutional investors (NIIs) led the charge, getting subscribed 3.79 times. Retail individual investors (RIIs) were not far behind, subscribing their portion 3.35 times. However, the qualified institutional buyers (QIBs) category saw a subscription of only 1% at that time, likely because a significant portion had already participated in the anchor round.
IPO Details and Government's Divestment Agenda
Ahead of the public issue, BCCL had already secured strong backing. On Thursday, the company announced it raised over Rs 273 crore from anchor investors. The IPO itself is a Rs 1,071-crore offer with a price band set between Rs 21 to Rs 23 per share. At the upper end of this band, the company commands a valuation exceeding Rs 10,700 crore.
It is crucial to note that this IPO is entirely an offer for sale (OFS) of 46.57 crore equity shares by the parent company, Coal India Ltd. No fresh equity is being issued by BCCL, meaning the company will not receive any proceeds from the issue; the funds will go to the selling shareholder, Coal India.
This listing is a strategic move under the government's broader divestment drive in the coal sector. The objective is to unlock the value of Coal India's subsidiaries and introduce greater transparency and market discipline through public participation. The company's red herring prospectus states that the listing will help BCCL realise the advantages of being a publicly-traded entity.
Company Profile and Market Context
Incorporated in 1972, Bharat Coking Coal Ltd is a key player in the mining and supply of coking coal, which is essential for steel production. Its operations are primarily concentrated in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal.
The BCCL offering arrives during a historic boom in India's primary markets. In 2025, Indian companies raised nearly Rs 1.76 lakh crore through IPOs, setting a new record. This figure surpassed the Rs 1.6 lakh crore mobilised by 90 companies in 2024 and the Rs 49,436 crore raised in 2023. This surge is supported by strong domestic liquidity, steady investor sentiment, and a favourable macroeconomic environment.
The IPO will remain open for subscription until January 13. Reports suggest a strong grey market premium (GMP) of 43.5%, indicating high investor optimism about the stock's listing gains.
