The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, has received an enthusiastic response from investors on its opening day. The public issue was subscribed 8.09 times on the first day of bidding, Friday, January 10, driven by strong demand across investor categories.
Robust Subscription and Grey Market Premium
The subscription data reveals a particularly strong appetite from retail and non-institutional investors (NIIs). The retail investor portion was booked 9.26 times, while the NII segment saw an overwhelming 16.39 times subscription. Qualified Institutional Buyers (QIBs) had subscribed 30% of their allotted portion by the end of the first day. In total, bids were received for 280.61 crore shares against the 34.69 crore shares on offer.
Meanwhile, the grey market premium (GMP) for the Bharat Coking Coal IPO stands at ₹10.6 today. This grey market activity suggests investors are willing to pay above the issue price. Based on the upper price band of ₹23, this GMP indicates an estimated listing price of around ₹33.6 per share, a potential gain of 46.09%. Market observers note that the current GMP shows a downward trend compared to the highest recorded level of ₹16.25 in recent sessions.
IPO Details and Financial Valuation
The Bharat Coking Coal IPO is purely an offer for sale (OFS) of 46.58 crore shares by its parent company, Coal India. At the upper price band of ₹23 per share, the OFS is expected to raise ₹1,071 crore for Coal India. Prior to the public opening, the company secured ₹273.1 crore from anchor investors.
According to the offer documents, at the highest price point, the issue is valued at approximately 9 times the price-to-earnings ratio and nearly 2 times the price-to-book ratio. BCCL is India's leading producer of coking coal, accounting for roughly 58.5% of the nation's total production in FY25. It holds estimated reserves of 7.91 billion tonnes, making it the primary domestic source of high-grade coking coal essential for the steel industry.
Analyst Reviews and Key Dates to Remember
Leading brokerages have largely recommended subscribing to the issue, citing the company's strong market position and improving financials. Canara Bank Securities advised a "SUBSCRIBE" for long-term gains, highlighting BCCL's linkage to Coal India and a flourishing steel sector, though it cautioned about seasonal disruptions like heavy rainfall. Nirmal Bang pointed to the company's robust EBITDA margin expansion from 4% in FY23 to 13% in FY25 and its nearly debt-free balance sheet, endorsing a subscribe rating. Anand Rathi noted that the valuation appears fair given the company's reliable track record and suggested subscribing for potential listing gains.
The IPO subscription window will remain open until Monday, January 13. The basis of allotment is tentatively scheduled for Wednesday, January 14. Refunds will be initiated on Thursday, January 15, with shares credited to demat accounts of successful allottees on the same day. The Bharat Coking Coal share price is expected to list on BSE and NSE on Friday, January 16.
