Bharat Coking Coal Limited's initial public offering has garnered significant investor interest, achieving 17.19x oversubscription by 11.36 AM on January 12, 2026, the second day of bidding. The ₹1,071 crore offer-for-sale by Coal India Limited received overwhelming response from retail and institutional investors.

Subscription Details

The IPO received bids for 5,96,53,27,200 equity shares against the offered 34,69,46,500 shares, according to stock exchange data. The subscription pattern showed varied interest across different investor categories.

The Non-Institutional Investors category drove the subscription with the highest oversubscription at 42.50 times, while the Retail Individual Investors portion was subscribed 16.76 times. The shareholder reservation portion also saw robust demand at 22.63 times subscription.

Brokerage Recommendations

Several brokerages have issued recommendations for the IPO, with most suggesting subscription for potential listing gains. Anand Rathi Research valued the company at 8.64 times FY25 earnings at the upper price band of ₹23, terming it fairly valued and recommending subscription for listing gains.

SBI Securities assigned a 'Subscribe' rating, highlighting BCCL's position as India's largest coking coal producer with 58.5% market share and estimated reserves of 7.91 billion tonnes. Mehta Equities analyst Rajan Shinde also recommended subscribing for healthy listing gains despite concerns over the 100% OFS structure.

Strategic Value and Timeline

Lemonn Markets Desk analyst Gaurav Garg emphasized the strategic value unlocking aspect, suggesting the listing could generate over ₹1 lakh crore in incremental shareholder value for Coal India by FY2030. The firm noted that while FY25 and first-half FY26 performance was impacted by operational disruptions and adverse weather, these headwinds appear transitory.

The three-day IPO opened on January 9 and will close on January 13. Prior to the opening, the company successfully raised ₹273.1 crore from anchor investors including Life Insurance Corporation, Societe Generale, and various mutual fund schemes.

Bharat Coking Coal's initial public offering has garnered strong investor interest, achieving 14.77 times subscription on its second day of bidding. The ₹1,300 crore issue, which opened for subscription on Friday, was fully subscribed on its first day itself, driven primarily by demand from non-institutional investors.

IPO Structure and Timeline

The public offering is entirely an offer for sale, with promoter Coal India divesting up to 46.57 crore equity shares. The issue is priced within a band of ₹21-23 per share, allowing investors to apply for a minimum of one lot comprising 600 shares.

IDBI Capital Markets & Securities and ICICI Securities Limited serve as Book Running Lead Managers, while KFin Technologies Limited acts as the registrar. Share allotment is scheduled for January 14, with credit to demat accounts on January 15. The company will list on BSE and NSE on January 16.

Subscription Performance by Category

The IPO has witnessed varied response across investor categories, with non-institutional investors showing the highest enthusiasm.

Grey Market Premium Indicates Strong Listing

The grey market premium for Bharat Coking Coal shares has risen to ₹10.70, according to market sources. This premium suggests a potential listing price of ₹33.70 per share, indicating possible gains of 46.52% for investors who secure allotment at the upper price band. However, grey market premiums are speculative and do not represent official data.

Financial Performance Overview

Bharat Coking Coal's recent financial performance presents a mixed picture across different periods. The company reported net profit of ₹1,240 crore for FY25, compared to ₹1,564 crore in FY24 and ₹665 crore in FY23.

For the first half of FY26, the company's profit after tax stood at ₹124 crore, significantly lower than ₹749 crore in the corresponding period of the previous year. Revenue from operations for H1 FY26 was ₹5,659 crore compared to ₹6,846 crore in the same period last fiscal.

Production Achievements and Growth

Despite financial fluctuations, Bharat Coking Coal has demonstrated consistent production growth. The company achieved record coking coal output of 39.11 million tonnes in FY24, supported by strategic deployment of heavy earth-moving machinery. BCCL has maintained a compound annual growth rate of 5.80% in coking coal production from FY23 to FY25, reflecting its operational efficiency and capacity expansion efforts.