Bharat Coking Coal IPO Day 2: Strong GMP at 46% with 8.09x Subscription on Opening Day
Bharat Coking Coal's ₹1,071 crore IPO shows exceptional market response with 8.09x subscription on Day 1 and 46% grey market premium. India's largest coking coal producer, contributing 58.5% of domestic output, reported ₹14,401 crore revenue and ₹1,240 crore profit in FY25. Strong investor participation across retail (9.26x) and NII (16.39x) categories reflects confidence in the debt-free company's market position.
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Bharat Coking Coal's ₹1,071 crore initial public offering has entered its second day of bidding with remarkable investor enthusiasm, demonstrating strong market confidence in India's largest coking coal producer. The issue achieved full subscription within just 30 minutes of opening on Day 1, setting the tone for what appears to be a highly successful public offering.
Strong Grey Market Performance
The IPO is currently generating significant interest in the grey market, trading at a premium of ₹11 over the upper issue price of ₹23. This represents approximately 46% premium, indicating positive market sentiment ahead of the listing. Based on this grey market premium, the stock is expected to list around ₹34 per share, though actual listing prices may vary depending on market conditions.
Impressive Subscription Numbers
By the end of the first day, the issue demonstrated exceptional investor demand across categories:
| Category | Subscription Multiple | Shares Available |
|---|---|---|
| Overall | 8.09x | 34.69 crore |
| Retail Individual Investors | 9.26x | 13.85 crore |
| Non-Institutional Investors | 16.39x | 5.93 crore |
| Qualified Institutional Buyers | 30% | 7.91 crore |
The issue received bids for 280.61 crore shares against the 34.69 crore shares on offer. The strong response was particularly driven by robust participation from retail investors and non-institutional investors, reflecting high confidence in the company's prospects.
Company Profile and Market Position
Bharat Coking Coal holds a dominant position as India's largest producer of coking coal and the only major domestic supplier of prime coking coal, a critical raw material for steel production. The company contributed approximately 58.5% of India's domestic coking coal output in FY25, underlining its strategic importance to the steel sector.
| Key Metrics | Details |
|---|---|
| Estimated Reserves | 7.91 billion tonnes |
| Market Share | 21.5% of India's total coking coal resources |
| Mining Operations | 34 mines |
| Locations | Jharia coalfields (Jharkhand), Raniganj coalfields (West Bengal) |
Financial Performance
The company reported strong financial results in FY25, demonstrating its robust operational capabilities:
| Financial Metric | FY25 Performance |
|---|---|
| Revenue | ₹14,401.00 crore |
| Consolidated Profit | ₹1,240.00 crore |
| Debt Status | Debt-free |
| Cash Generation | Positive |
Bharat Coking Coal operates as a wholly owned subsidiary of Coal India, the world's largest coal producer, benefiting from strong technical expertise, financial backing, and large-scale operational strength.
IPO Details and Analyst Recommendations
The IPO is scheduled to close on January 13, with shares priced between ₹21 to ₹23 per share. The issue consists entirely of an offer for sale by Coal India, with a face value of ₹10 and minimum bid requirement of 600 shares. The company's equity shares will be listed on both NSE and BSE.
Anand Rathi Research considers the company fairly valued at 8.64x P/E based on FY25 earnings at the upper price band, recommending subscription for listing gains. SBI Securities notes the company's valuation at 6.4x EV/EBITDA multiple based on post-issue capital and recommends subscribing at the cut-off price. The IPO is being managed by IDBI Capital Markets & Securities Limited and ICICI Securities Limited as book-running lead managers, with KFin Technologies Limited as the registrar.
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