Bharat Coking Coal's initial public offering has garnered exceptional investor interest on its second day of bidding, with the issue being subscribed 24.37 times as of Friday afternoon. The wholly-owned subsidiary of Coal India opened its IPO on January 9 and will continue accepting bids until January 13.

Subscription Details

According to NSE data as of 1:50 pm on Friday, the IPO attracted significant investor participation across all categories:

The qualified institutional buyers segment remains the only category yet to be fully subscribed, with 56% subscription recorded so far.

Grey Market Performance

In the unofficial market, Bharat Coking Coal shares are trading at approximately 47% premium to the IPO price. However, grey market premiums are known to be volatile and reflect sentiment in the unlisted market rather than guaranteed listing performance.

Issue Structure and Pricing

The IPO represents an entirely offer-for-sale transaction through which parent company Coal India is divesting a 10% stake. Key issue parameters include:

Allocation and Reservations

The company has structured the allocation to accommodate different investor categories:

• Retail Investors: 35% allocation
• Qualified Institutional Buyers: 50% allocation
• Non-Institutional Investors: 10% allocation
• Coal India Shareholders: ₹107 crore reserved quota

Investors holding Coal India shares on or before January 1, 2026, are eligible to apply under the shareholder quota. Additionally, eligible employees will receive a discount of ₹1 per share.

Company's Growth Plans

Manoj Kumar Agarwal, Chairman and Managing Director of Bharat Coking Coal, outlined the company's expansion strategy during an interaction with CNBC-TV18. The company currently produces 40.5 million tonnes and aims to increase production to 56 million tonnes by 2030.

The growth strategy encompasses:

• Expanding open-cast mining operations
• Reviving underground operations using modern technologies including continuous miners
• Monetising old, stopped underground mines
• Amalgamating smaller open-cast mines into larger, more efficient operations

Market Position and Timeline

Bharat Coking Coal holds the position of India's largest coking coal producer, accounting for approximately 58.5% of domestic output in FY25. The company primarily operates in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.

Following the IPO completion, Coal India's stake will reduce to 90%, which remains well above the minimum public shareholding requirement. IDBI Capital and ICICI Securities serve as the book running lead managers for the issue.

The basis of allotment is scheduled for January 14, with the stock expected to list on the exchanges on January 16.

Bharat Coking Coal Limited's public offering has captured significant market attention, achieving remarkable oversubscription levels within just two days of opening. The Coal India Limited subsidiary's IPO demonstrates strong investor appetite for strategic mining assets in India's industrial growth story.

Subscription Performance Exceeds Expectations

The BCCL IPO recorded impressive subscription figures across all investor categories by January 12, the second day of bidding. The issue achieved substantial oversubscription with varying demand patterns among different investor segments.

The Non-Institutional Investors category showed particularly strong enthusiasm, subscribing nearly 40 times the allocated portion, while retail investors demonstrated consistent interest with over 15 times subscription.

IPO Structure and Investment Requirements

The public issue represents a significant offering in the mining sector, structured entirely as an Offer for Sale without fresh capital infusion to the company.

Investment requirements vary significantly across investor categories, with retail participation accessible at relatively modest levels.

The issue includes employee reservation of up to 2.33 crore shares, offered at a ₹1 discount per share to the issue price.

Grey Market Signals Strong Listing Expectations

Grey market trading indicates robust investor confidence in the company's listing performance. According to InvestorGain website data, the BCCL IPO commands a significant premium in unofficial trading.

This premium reflects market expectations of strong listing performance, though grey market prices remain unofficial indicators subject to volatility.

Strategic Market Position

Bharat Coking Coal Limited holds a crucial position in India's metallurgical coal landscape. The company operates as the single largest domestic supplier of coking coal, with substantial production capacity and market share.

Key Operational Highlights:

• Annual production exceeds 40 million tonnes
• Accounts for approximately 50% of India's indigenous coking coal production
• Strategic importance amid India's 80-85% import dependence for coking coal
• Critical supplier for India's expanding steel sector targeting 300 million tonnes capacity

Market analysts emphasize the company's strategic significance beyond typical PSU valuations. The business provides exposure to a scarce, strategically critical segment supporting India's industrial expansion, particularly as domestic steel capacity continues growing toward government targets.