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.

Bharat Coking Coal's initial public offering enters its final day today, January 13, 2026, with investors showing strong appetite for the Coal India subsidiary's public issue. The ₹1,071 crore mainboard IPO has generated significant interest across investor categories, with subscription levels indicating robust demand.

Subscription Status Shows Strong Investor Interest

The public issue has witnessed overwhelming response from investors across all categories. By 5:00 PM on the second day of bidding, the subscription data revealed strong participation:

The exceptionally high subscription in the NII segment demonstrates strong confidence from high-net-worth individuals and smaller institutions in the company's prospects.

Grey Market Premium Recovers

Bharat Coking Coal shares have shown recovery in the grey market after experiencing declines in previous sessions. The current grey market premium stands at ₹11, representing a turnaround from recent negative sentiment. Market observers attribute this recovery to improved secondary market conditions and the strong investor response to the public issue.

The rebound in Indian stock markets and positive investor sentiment toward the IPO have contributed to the trend reversal in grey market trading.

Brokerage Recommendations Favor Subscription

Multiple leading brokerages have assigned positive ratings to the Bharat Coking Coal IPO based on the company's fundamentals and market position:

Anand Rathi has assigned a 'subscribe' rating, noting the company's strong market share and fair valuation at 8.64x P/E on FY25 earnings at the upper price band. The brokerage highlighted the company's consistent track record and superior financial metrics while recommending the IPO for listing gains.

Marwadi Shares and Finance also recommends subscription, pointing to the company's position as India's largest coking coal producer. Based on TTM September 2025 EPS of ₹1.32 on a post-issue basis, the company is expected to list at approximately 17x P/E with a market capitalization of ₹10,711 crores.

Other prominent brokerages supporting the IPO include Adroit Financial Services, DRChokesy, Kantilal Chhaganlal Securities, Aditya Birla Money, Axis Capital, Canara Bank Securities, GEPL Capital, Mehta Equities, Nirmal Bang, Swastika Investmart, and Ventura Securities.

IPO Structure and Timeline

The public issue details and key dates are structured as follows:

As a subsidiary of Coal India, Bharat Coking Coal benefits from strong parentage and access to substantial coal reserves, positioning it as a key player in India's coking coal sector. The company's market leadership and growth potential have been key factors in analyst recommendations favoring subscription to the public issue.