Anand Rathi has recommended a "Subscribe Long Term" rating for the Bharat Coking Coal IPO, acknowledging the company's strong market position despite concerns about full pricing at current valuations.

Market Leadership and Production Capacity

Bharat Coking Coal holds the distinction of being India's largest coking coal producer, with their production representing 58.50% of total domestic coking coal output in Fiscal 2025. The company operates with substantial reserves, holding an estimated 7,910 million tonnes as of April 1, 2024, positioning it among the largest coking coal reserve holders in the country.

The company's production portfolio includes various grades of coking coal, non-coking coal, and washed coal, primarily serving the steel and power industries. This diversified product mix caters to critical sectors of the Indian economy.

Operational Performance and Growth

The company has demonstrated impressive production growth over recent years:

Corporate Structure and Background

Bharat Coking Coal operates as a 100% subsidiary of Coal India Limited (CIL) and achieved Mini Ratna status in 2014. Established in 1972, the company was created specifically to mine and supply coking coal from strategic coalfields located in Jharia, Jharkhand, and Raniganj, West Bengal. The company has significantly expanded its operations since inception.

Valuation Analysis

At the upper price band, the IPO presents the following valuation metrics:

Anand Rathi notes that while the IPO appears fully priced at these levels, the company's market leadership position and growth trajectory support a long-term investment perspective. The brokerage's recommendation reflects confidence in the company's fundamental strengths despite premium valuations.

Bharat Coking Coal Ltd's ₹1,071-crore initial public offering made a strong debut, achieving full subscription within the first hour of trading and reaching 1.55 times subscription by 10:42 AM on January 9, 2026. The robust response was primarily driven by individual and high networth investors, while institutional participation remained notably subdued during the early hours.

Subscription Performance Breakdown

The IPO witnessed varied participation across different investor categories, with clear preferences emerging among retail and non-institutional segments.

The subscription pattern indicates strong confidence from individual investors and high networth participants in the company's fundamentals and strategic positioning within India's coal ecosystem. The minimal institutional participation at this early stage suggests a wait-and-watch approach from larger institutional players.

IPO Structure and Timeline

The public offering carries several distinctive features that set it apart in the current market environment.

The entire issue represents an offer-for-sale by promoter Coal India Ltd, with no fresh issue component. This structure means Bharat Coking Coal Ltd will not receive any proceeds from the public offering, as all funds will go to the selling promoter.

Market Positioning and Investor Sentiment

Brokerages have expressed optimism about BCCL's market prospects, highlighting several key strengths that appear to be resonating with investors. The company's commanding position in India's coking coal market, combined with its sizeable reserve base, has drawn positive attention from market analysts.

The investment thesis is further supported by clear long-term demand visibility, driven by anticipated growth in domestic steel capacity and the government's strategic focus on import substitution. These factors collectively contribute to the strong early subscription numbers witnessed in the opening hours.

Looking Ahead

With the IPO scheduled to conclude on January 13, 2026, market participants will be closely monitoring the final subscription numbers and broader market sentiment. The listing performance on January 16, 2026, will likely reflect the culmination of investor interest and market conditions prevailing at the time of closure.