The Rs 1,071.11 crore IPO is a pure offer-for-sale of 46.57 crore shares by Coal India, with no fresh capital being raised. The issue closes on January 13, with allotment likely on January 14 and listing on the BSE and NSE from January 16.
Meanwhile, the price band for the IPO has been fixed at Rs 21 to Rs 23 per share. Investors can apply in lots of 600 shares, putting the minimum investment for retail buyers at Rs 13,800 at the top end of the price band. The issue structure and pricing are designed to draw interest from both retail and institutional investors.
Bharat Coking Coal IPO GMP today:
As of January 8, the IPO’s grey market premium (GMP) is around Rs 11.5, implying a 50% premium over the upper end of the price band of Rs 23. The grey market is an unofficial platform where IPO shares are traded before they list on the exchanges. While the GMP reflects investor sentiment and can hint at potential listing gains, it is not a reliable predictor of actual performance.
About Bharat Coking Coal
Established in 1972, Bharat Coking Coal Limited is engaged in the mining of coking coal, non-coking coal, and washed coal. The company plays a crucial role in supplying coking coal to India’s steel and power sectors, and operates as a key subsidiary of Coal India Limited.
As of March 31, 2025, BCCL operates 32 mining facilities, including 25 opencast mines, three underground mines, and four mixed mining operations. Its mining activities are spread across Jharia in Jharkhand and Raniganj in West Bengal, covering a total leasehold area of 288.31 square kilometers.The company holds substantial coking coal reserves of approximately 7,910 million tonnes as of April 1, 2024. In FY25, BCCL accounted for about 58.5% of India’s total domestic coking coal production. Coal production has steadily increased from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25, highlighting consistent operational growth. In FY24, the company produced 39.11 million tonnes of coking coal and 1.99 million tonnes of non-coking coal.
Financially, BCCL reported revenue of Rs 14,402 crore in FY25, a slight decline of 1.7% from Rs 14,653 crore in FY24. Profit fell more sharply by 20%, to Rs 1,240 crore from Rs 1,564 crore.
Brokerage note on BCCL IPO:
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 that investors subscribe to the issue at the cut-off price.
ICICI Direct notes that BCCL’s sales and PAT have grown at a CAGR of 5% and 37%, respectively, over FY23–25. In FY25, the company reported EBITDA margins of 12.7% and a RoCE of 18.2%. The BCCL IPO is valued at approximately 5.5x EV/EBITDA and 8.6x P/E based on FY25 numbers. ICICI Direct has assigned an UNRATED status to Bharat Coking Coal (BCCL). Key risks and concerns include the potential depletion of coal reserves, which could negatively impact the company’s operational performance and long-term sustainability.
Additionally, the business faces a high level of client concentration, with the top ten customers contributing more than 80% of total revenues, making earnings vulnerable to changes in demand from a limited customer base. Over the longer term, the increasing adoption of renewable energy sources poses a structural risk, as it could reduce overall demand for coal.
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.
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