Bharat Coking Coal's initial public offering demonstrated strong investor appetite on the first day of bidding, with the issue subscribed 2.12 times by 11:03 am on Friday, January 9. The robust response was primarily driven by retail and non-institutional investors, indicating significant interest in the Coal India subsidiary's public debut.

Strong Retail and NII Participation

The subscription data revealed impressive demand across key investor categories:

Within the NII segment, bids in the ₹2-10 lakh category stood out with a 4.65 times subscription, while bids above ₹10 lakh were subscribed 2.74 times. The QIB portion remained muted at about 1 percent, following the typical pattern of institutional bidding towards the close of the issue.

IPO Structure and Pricing

Bharat Coking Coal's ₹1,071.11 crore public issue is entirely an offer for sale of 46.57 crore equity shares by promoter Coal India, priced in a band of ₹21-23 per share. As a pure OFS, Bharat Coking Coal will not receive any proceeds from the IPO, with the entire amount accruing to the selling shareholder.

The strength of early demand was evident soon after the issue opened, with the IPO getting fully subscribed within approximately 25 minutes of opening, driven largely by retail and non-institutional bids.

Anchor Investor Response

Ahead of the public issue, the company successfully raised ₹273.13 crore from anchor investors on January 8 by allotting 11.87 crore equity shares at ₹23 per share. The anchor investor composition included:

• Life Insurance Corporation of India - Largest anchor investor
• Nippon Life India Mutual Fund
• Bandhan Mutual Fund

Timeline and Management

The IPO opened for public subscription on January 9 and will close on January 13. Key upcoming dates include:

IDBI Capital Markets Services and ICICI Securities serve as the book-running lead managers to the issue, while KFin Technologies acts as the registrar. Market participants view the strong response as indicative of expectations for value unlocking from the listing, representing Coal India's strategy to unlock embedded value through its subsidiary's public offering.

Bharat Coking Coal's initial public offering (IPO) achieved a remarkable milestone by securing complete subscription within just 30 minutes of its launch, demonstrating exceptional investor appetite for the coal sector company.

Strong Investor Response Drives Rapid Subscription

The IPO witnessed overwhelming demand from multiple investor categories, with non-institutional investors (NIIs) and retail investors leading the subscription drive. This rapid subscription timeline of 30 minutes represents one of the fastest complete subscriptions in recent market history, reflecting strong confidence in the company's business model and growth prospects.

Market Reception and Investor Categories

The swift subscription was characterized by robust participation across investor segments:

• Non-Institutional Investors (NIIs): Demonstrated strong appetite for the offering
• Retail Investors: Showed significant interest in the coal sector opportunity
• Overall Market Response: Complete subscription achieved in record time

Significance for Coal Sector

The exceptional response to Bharat Coking Coal's IPO indicates renewed investor interest in the coal sector. The 30-minute complete subscription timeline suggests that investors view the company as well-positioned within the industry landscape.

This rapid subscription success reflects the current market sentiment toward established players in the coal industry and demonstrates the effectiveness of the company's IPO strategy in attracting diverse investor participation.