New Delhi, Jan 9
State-owned Bharat Coking Coal, a subsidiary of Coal India, opened its initial public offering for bidding on Friday, with issue being fully subscribed within 30 minutes.
Grey market premiums on multiple platforms showed the premium at Rs 11, suggesting a potential listing around Rs 34 and an estimated listing gain of about 47.83 per cent (as of 1.05 pm).
The country's largest coking coal producer, BCCL's IPO which is the first mainboard public issue of 2026 with Rs 1,071 crore offer, is open for bids until January 13.
Early on Friday, the issue was oversubscribed 1.12 times with bids for 38.9 crore shares against 34.69 crore on offer, driven largely by non‑institutional and retail investors who subscribed 1.99 times and 1.5 times their quotas respectively.
The IPO is entirely an offer for sale by Coal India, which holds 100 per cent of BCCL and price band is fixed at Rs 21 to Rs 23, with the company aiming to raise Rs 1,071 crore at the upper band.
Ahead of the public offer, the company raised Rs 273 crore from anchor investors who were allotted 11,87,53,500 shares at Rs 23 each. As much as half the issue is reserved for qualified institutional buyers, 35 per cent for non‑institutional investors and 15 per cent for retail investors.
Analysts largely recommend subscribing for listing gains, due to BCCL's strong market position and robust P/E at roughly 8.64 times FY25 earnings at the upper band.
The company is the largest producer of coking coal in India and accounted for 58.50 per cent of the country's total domestic coking coal production in the financial year 2024-25.
Bharat Coking Coal was incorporated in 1972 and holds Mini Ratna status. The company does not have any directly comparable listed peers in India and has therefore drawn comparisons with global players such as Alpha Metallurgical Resources and Warrior Met Coal.
- IANS
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