The Rs 1,071 crore IPO of Bharat Coking Coal witnessed one of the strongest subscription responses in India’s primary market in recent years, attracting bids worth over Rs 1.1 lakh crore. Exchange data showed that investors bid for 50,93,16,75,600 shares at the upper end of the price band of Rs 23, translating into a total bid value of around Rs 1.17 lakh crore.
What should investors do?
Shivani Nyati, Head of Wealth at Swastika Investmart, recommends traders and short-term investors to consider booking profit. Long-term investors may continue to hold the stock with a stop-loss of Rs 35, keeping a medium-to-long-term perspective. “The stellar listing was driven by strong fundamentals, BCCL’s strategic importance in India’s steel and metallurgical coal supply chain, and a positive outlook for the coal and core infrastructure sector. Strong IPO oversubscription across categories clearly translated into aggressive buying interest on debut,” she added.SBI Securities says strong parentage bodes well for the company. BCCL’s parent company, Coal India, is the largest coal producing company in the world and commanded a market share of 74% in the domestic industry during FY25. BCCL benefits significantly from its strategic support and vast resources such as access to advanced technologies, pool of skilled professionals, and robust financial backing. Additionally, BCCL leverages Coal India’s technical expertise in coal mining and resource management thereby enhancing its market recognition and credibility.
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Rajan Shinde, Research Analyst at Mehta Equities, said BCCL offers investors exposure to a strategically critical asset with a dominant position in India’s coking coal value chain. Its large reserve base in the Jharia coalfields, leadership in coking coal washery capacity, and strong logistics infrastructure create durable cost advantages and high entry barriers. Supported by Coal India’s technical and financial backing, BCCL is well placed to benefit from structural demand tailwinds and India’s import substitution agenda. “With washery expansion, asset monetisation initiatives, and normalisation of mining activity, we expect a recovery in volumes and earnings from FY2027, providing long-term visibility and value creation for investors,” Shinde added.
Gaurav Garg, Research Analyst at Lemon Markets Desk, said the response to the issue reflected confidence in the company’s monopolistic position in India’s coking coal segment and its long-term demand visibility. Analysts view the stock as a long-term play linked to India’s infrastructure and steel growth, though near-term performance will depend on broader market conditions and coal pricing trends. “The scarcity value of a pure-play coking coal producer and steady demand from the steel sector support favourable secondary market sentiment,” Garg said, while cautioning that investors should track earnings consistency over time.
The IPO was entirely an offer for sale by promoter Coal India and post listing, promoter shareholding has reduced to about 90% from 100%, improving public float while retaining government control.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)