The IPO was fully subscribed within just 30 minutes of opening on Day 1. By the end of the first day, the issue was subscribed 8.09 times overall. It received bids for 280.61 crore shares against the 34.69 crore shares on offer. The strong response was largely driven by robust participation from retail investors and non-institutional investors (NIIs), reflecting high confidence in the issue.
Bharat Coking Coal IPO GMP today
The current grey market premium (GMP) for the Bharat Coking Coal IPO is Rs 11, indicating a premium of nearly 46% over the upper issue price of Rs 23. Based on this GMP, the stock is expected to list at around Rs 34 per share.The strong GMP signals positive sentiment in the unofficial market and suggests that investors are anticipating a solid listing gain. However, it is important to note that GMP is only an indicator of market expectations, and the actual listing price may differ depending on market conditions and demand on the day of listing.
Bharat Coking Coal IPO subscription status
On the first day of bidding, the Bharat Coking Coal IPO was subscribed approximately 8.09 times overall, highlighting a strong initial response from investors.
Retail Individual Investors (RIIs) showed healthy participation, with their portion subscribed 9.26 times against the 13.85 crore shares reserved for this category. This indicates solid early interest from small investors.Demand was even stronger in the Non-Institutional Investors (NIIs) segment, which was subscribed 16.39 times for the 5.93 crore shares available, reflecting strong confidence from high-net-worth individuals and corporate investors.
Meanwhile, the Qualified Institutional Buyers (QIBs) segment saw about 30% subscription against the 7.91 crore shares allotted to them. This relatively lower figure is typical in the early phase, as institutional investors usually place their bids closer to the closing days of the issue.
Bharat Coking Coal IPO: Key details
The Bharat Coking Coal IPO is set to close on January 13. The issue size is approximately Rs 1,071 crore and consists entirely of an offer for sale by Coal India. The IPO is priced in the range of Rs 21 to Rs 23 per share, with a face value of Rs 10 and a minimum bid requirement of 600 shares. The company’s equity shares are proposed to be listed on both the NSE and BSE.
Bharat Coking Coal is India’s largest producer of coking coal and the only major domestic supplier of prime coking coal, a critical raw material for steel production. As of April 2024, the company had estimated coking coal reserves of about 7.91 billion tonnes, accounting for nearly 21.5% of the country’s total coking coal resources. In FY25, it contributed roughly 58.5% of India’s domestic coking coal output, underlining its strategic importance to the steel sector.
The company operates 34 mines across the Jharia coalfields in Jharkhand and the Raniganj coalfields in West Bengal. Its proximity to major steel manufacturing hubs, along with access to established logistics infrastructure, supports steady demand for its output. Furthermore, ongoing investments in coal washeries are expected to improve the supply of higher-quality washed coking coal.
Bharat Coking Coal is a wholly owned subsidiary of Coal India—the world’s largest coal producer—and benefits from its parent company’s strong technical expertise, financial backing, and large-scale operational strength.
Financially, Bharat Coking Coal reported revenue of about Rs 14,401 crore in FY25, with a consolidated profit of Rs 1,240 crore. While margins have shown some volatility due to pricing and cost factors, the business remains cash-generative and debt-free, benefiting from scale and regulated demand.
Should you subscribe?
According to Anand Rathi Research, Bharat Coking Coal, which holds a strong market position in the industry, is fairly valued at around 8.64x P/E based on FY25 earnings at the upper price band. Given the company’s consistent performance and strong financial metrics, the current valuation appears to be fully priced in. Therefore, the brokerage recommends subscribing to the IPO with a view to earning listing gains.
According to a report by SBI Securities, BCCL is India’s largest producer of coking coal, accounting for 58.5% of total domestic production in FY25. The company holds estimated reserves of 7.91 billion tonnes and operates a network of 34 mines, positioning it among the largest holders of coking coal reserves in the country. At the upper price band of Rs 23, the issue is valued at an EV/EBITDA multiple of 6.4x based on post-issue capital. SBI Securities recommends investors subscribe to the issue at the cut-off price.
The IPO is being managed by IDBI Capital Markets & Securities Limited and ICICI Securities Limited as the book-running lead managers, while KFin Technologies Limited has been appointed as the registrar to the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)