Further, in terms of applications, the IPO set a new record at 90.31 lakh applications. Waaree Energies, which brought its IPO in late 2024, is the close second with 82.65 lakh applications.
The IPO was subscribed nearly 147 times overall, reflecting broad-based participation across investor categories despite heightened volatility in equity markets. Qualified institutional buyers led the charge with subscription of 311 times, while non-institutional investors bid 258 times the shares reserved for them. Retail investors subscribed their portion 49 times, employees around five times, and shareholders 87 times.
The overwhelming demand has come at a time when India’s benchmark indices have struggled for direction, making the scale of interest in Bharat Coking Coal stand out.
Analysts attribute the response to a combination of scarcity value, strategic importance of coking coal to India’s steel industry, and the relatively modest valuation at which the company has come to market.
Gaurav Garg, research analyst at Lemonn Markets Desk, said the strong response reflects confidence in Bharat Coking Coal’s monopolistic position and long-term demand visibility. He noted that exceptional oversubscription in the non-institutional segment points to valuation comfort and expectations of listing gains, while robust retail and shareholder participation indicates trust in the broader Coal India ecosystem.
Garg added that although QIB demand was more measured relative to other categories, the overall subscription trend suggests favourable secondary market sentiment driven by the scarcity value of a pure-play coking coal producer.
Bharat Coking Coal IPO value
Bharat Coking Coal is India’s largest producer of coking coal and the country’s only meaningful domestic source of prime coking coal, a critical raw material for steelmaking. According to its offer documents, the company held estimated reserves of around 7.91 billion tonnes as of April 2024, accounting for roughly 21.5% of India’s total coking coal resources.
In FY25, it contributed nearly 58.5% of domestic coking coal production, operating 34 mines across Jharkhand and West Bengal. This dominant position has made the company central to India’s efforts to reduce dependence on imported coking coal.
At the upper end of the price band, the IPO values Bharat Coking Coal at a market cap of about Rs 10,711 crore. On post-issue capital, the valuation works out to roughly 6.4x EV/EBITDA, which several analysts consider reasonable given the company’s long reserve life, operating scale and monopoly-like position in a segment where entry barriers are high.
Analysts take
SBI Securities, which has recommended subscribing to the issue, has highlighted the widening demand-supply gap for coking coal in India as steelmaking capacity continues to expand. The brokerage points to Bharat Coking Coal’s dominant reserve base and its parentage under Coal India as key strengths, giving it access to capital, technical expertise and logistical advantages that are difficult to replicate.
A critical part of the investment case is the company’s focus on coal beneficiation. Bharat Coking Coal currently operates washeries with an owned capacity of 13.65 million tonnes per annum and is in the process of adding three new washeries with a combined capacity of 7 million tonnes per annum, along with renovation work at the Moonidih washery.
Once these projects are completed, total washery capacity is expected to rise to 20.65 million tonnes per annum, which could improve realisations and product mix over time by supplying higher-quality coal to steel producers.
Financial performance has also strengthened over the past two years. Between FY23 and FY25, the company reported revenue, EBITDA and PAT compound annual growth of 4.6%, 88.1% and 36.6%, respectively, supported by operating leverage and pricing.
Profitability, however, moderated in the first half of FY26 due to cost pressures and seasonal factors, a reminder that earnings can remain sensitive to operational disruptions and weather-related issues.
Rajan Shinde, research analyst at Mehta Equities, said the IPO offers exposure to a strategically critical asset with durable competitive advantages. He pointed to Bharat Coking Coal’s large reserve base in the Jharia coalfields, leadership in washery capacity and strong logistics infrastructure as factors that create high entry barriers and support long-term cash generation.
While acknowledging that recent performance was affected by temporary disruptions, he expects volumes and earnings to recover from FY27 as mining activity normalises and new washeries come on stream.
Healthy anchor book
The IPO’s anchor book, which was fully subscribed at 1x, added to investor confidence. Shares worth Rs 273 crore were allotted to anchor investors ahead of the issue, providing early institutional validation. According to market participants, the strength of the anchor book helped set the tone for aggressive bidding across categories.
Still, some analysts urge caution. The IPO is a 100% offer for sale worth about Rs 1,068.78 crore, meaning no fresh capital will flow into the company. While this does not dilute the underlying business quality, it limits immediate balance-sheet strengthening and places greater emphasis on execution of existing expansion plans.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)