Bharat Coking Coal Ltd's initial public offering has concluded its three-day bidding period with remarkable investor response, achieving a subscription rate of 33.67 times as of the final day on January 13. The Coal India subsidiary's IPO, which opened for bidding on January 9, demonstrated strong market appetite from the outset, getting fully subscribed within minutes of opening and reaching 8.09 times subscription on the first day.

IPO Structure and Pricing Details

The public offering represents a complete offer for sale by Coal India, which maintains 100% ownership in Bharat Coking Coal. The IPO is structured with specific parameters designed to attract retail and institutional investors.

All proceeds from the IPO will be allocated to Coal India, as this represents a divestment of the government-owned entity's subsidiary rather than a capital raising exercise for Bharat Coking Coal itself.

Grey Market Premium Analysis

The grey market activity surrounding Bharat Coking Coal shares has shown significant premium trends, indicating strong investor sentiment ahead of the listing. Current grey market premium stands at ₹10.60 per share, suggesting potential listing gains.

Analysis of the last 11 sessions of grey market activities reveals a downward trend from the peak premium levels, though the current premium still indicates substantial potential returns for successful applicants.

Timeline and Listing Schedule

The IPO follows a structured timeline for allotment and listing processes. Following the conclusion of bidding on January 13, the company will proceed with standard post-IPO procedures.

The rapid timeline from bidding conclusion to listing reflects the streamlined process for established subsidiary companies with clear operational track records.

Market Response and Subscription Pattern

The exceptional subscription rate of 33.67 times demonstrates robust institutional and retail investor confidence in the coal sector and Bharat Coking Coal's market position. The immediate full subscription within minutes of opening on January 9 indicated pent-up demand for exposure to the coking coal segment through this public market opportunity.

The anchor investor participation of ₹273 crore provided initial validation and price discovery support, contributing to the overall success of the public offering. This level of institutional backing typically signals confidence in the company's fundamentals and growth prospects within the coal industry ecosystem.

Bharat Coking Coal Limited's ₹1,071 crore initial public offering entered its third and final day of bidding on January 13, continuing to attract strong investor interest across all categories. The issue has achieved significant oversubscription and commands a substantial premium in the grey market, reflecting positive investor sentiment.

Strong Subscription Performance

By the close of the second day of bidding, the IPO demonstrated robust demand across investor categories. The overall subscription data reveals strong participation from retail and institutional investors.

The issue received bids for 1,168 crore shares against the 34.69 crore shares on offer. Non-institutional investors showed exceptional interest with 96.36 times subscription, while retail investors participated actively with 26.94 times subscription for their allocated quota.

Grey Market Premium Analysis

The IPO currently commands a grey market premium of ₹11, representing approximately 46% over the upper issue price of ₹23 per share. Based on this premium, the stock is estimated to list around ₹34 per share. The strong grey market premium indicates positive sentiment in unofficial trading and suggests expectations of healthy listing gains.

Issue Structure and Timeline

The IPO details reflect a significant divestment by the parent company Coal India Limited.

Company Profile and Market Position

Bharat Coking Coal Limited holds a dominant position in India's coking coal sector as the country's largest producer and the only significant domestic supplier of prime coking coal. The company's strategic importance stems from its role as a key input provider to the steel manufacturing industry.

The company operates 34 mines strategically located in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal. This strategic positioning near major steel-producing centres, combined with established logistics infrastructure, ensures consistent demand for its products.

Financial Performance

Bharat Coking Coal Limited reported strong financial metrics for FY25, demonstrating its revenue generation capabilities and profitability.

As a wholly owned subsidiary of Coal India Limited, the world's largest coal producer, the company benefits from strong technical expertise, financial support, and operational scale from its parent organization.

Analyst Recommendations

Brokerage firms have provided positive recommendations for the IPO based on the company's market position and valuation metrics. Anand Rathi Research notes the company is fairly valued at 8.64x P/E based on FY25 earnings at the upper price band, recommending subscription for listing gains. SBI Securities highlights the company's dominant market position and values the issue at an EV/EBITDA multiple of 6.40x based on post-issue capital, recommending subscription at the cut-off price.

IDBI Capital Markets & Securities Limited and ICICI Securities Limited serve as book-running lead managers, while KFin Technologies Limited acts as the registrar to the issue.