Bharat Coking Coal's highly anticipated stock market debut may face a short delay due to a market holiday on January 15, when stock exchanges will remain closed for Maharashtra municipal corporation elections. The settlement holiday could disrupt the IPO's post-closure timeline, potentially pushing the listing from the tentative January 16 date to January 17.

Impact of Market Holiday on IPO Timeline

The BSE announced in a circular that trading across equity, equity derivatives, commodity derivatives and electronic gold receipts will remain closed on January 15. More significantly, the day has been declared a settlement holiday, which typically affects banking and clearing operations during elections or major public events.

The IPO opened on January 9 and is scheduled to close on January 13. While allotment is expected to be finalized on January 14, the subsequent refunds and credit of shares originally planned for January 15 may get pushed to January 16 due to the settlement holiday. This domino effect could delay the listing by one day, though no official communication has been issued by the company or exchanges regarding a revised listing date.

Strong Investor Response Despite Potential Delay

The possible postponement has not dampened investor enthusiasm for the issue. The ₹1,071 crore IPO demonstrated remarkable demand, achieving full subscription within the first 30 minutes of opening on Day 1. By the end of the second day, the issue was oversubscribed over 25 times, with retail and non-institutional investors leading the charge.

In the grey market, Bharat Coking Coal shares were trading at a premium of approximately ₹11.00, representing nearly 46% over the upper issue price of ₹23.00, indicating strong expectations for healthy listing gains.

Company Profile and Market Position

Bharat Coking Coal stands as India's largest producer of coking coal and the only major domestic supplier of prime coking coal, a critical input for steel manufacturing. As of April 2024, the company held estimated coking coal reserves of around 7.91 billion tonnes, representing nearly 21.50% of India's total coking coal resources.

The company operates 34 mines across the Jharia coalfields in Jharkhand and the Raniganj coalfields in West Bengal, regions with established coal infrastructure and proximity to major steel plants. Ongoing investments in coal washeries are expected to improve the supply of higher-quality washed coking coal for efficient steel production.

Financial Performance and Valuation

For FY25, Bharat Coking Coal reported revenue of ₹14,401.00 crore and a consolidated profit of ₹1,240.00 crore. The business remains debt-free and cash-generative, despite some margin volatility due to pricing and cost dynamics.

Brokerages have taken a largely favorable view of the issue. Anand Rathi Research values the company at around 8.64 times FY25 earnings at the upper price band, while SBI Securities noted that at ₹23.00 per share, the issue is valued at an EV/EBITDA multiple of 6.40 times on post-issue capital. Both recommend subscription, with Anand Rathi focusing on potential listing gains and SBI Securities highlighting the company's dominant market share and reserve base.

The IPO consists entirely of an offer for sale by Coal India, with no fresh equity issuance. The shares are proposed to be listed on both the NSE and BSE, with investors required to bid for a minimum of 600 shares.

The listing date of Bharat Coking Coal Ltd (BCCL) shares has become uncertain following the announcement that domestic equity markets will remain closed on January 15 due to municipal corporation elections in Maharashtra. The development has created scheduling complications for the company's highly anticipated market debut.

IPO Timeline Disrupted by Market Holiday

The initial public offering of Bharat Coking Coal Ltd is scheduled to close for subscription on Tuesday, having opened on January 9. The basis of allotment is expected to be finalized on January 14, but the subsequent steps face delays due to the market closure.

According to the latest notification, trading in equities, equity derivatives, securities lending and borrowing, currency derivatives and interest rate derivatives will remain suspended on both the BSE and NSE on January 15. The commodity derivatives segment will also remain closed during the morning session, with January 15 also declared a settlement holiday and non-working day for banks.

Strong Investor Demand Despite Uncertainty

The IPO has witnessed exceptional investor response, demonstrating robust market appetite for the coking coal producer. The subscription numbers reflect strong confidence across multiple investor categories.

The strong demand has been driven by interest from retail, non-institutional and existing shareholder investor categories, indicating broad-based appeal across different investor segments.

Grey Market Premium Signals Strong Listing

Bharat Coking Coal shares are commanding significant premiums in the grey market, reflecting positive investor sentiment ahead of the listing. Market trackers have reported consistent premium levels that suggest potential listing gains.

Company Profile and Market Position

Bharat Coking Coal Ltd holds a dominant position in India's coking coal sector as the country's largest producer. The company's strategic importance stems from its substantial market share and extensive reserve base.

Key Company Metrics:

• Market share of domestic coking coal output: 58.50% in FY25
• Estimated coal reserves: 7,910.00 million tonnes
• Ownership structure: Wholly owned subsidiary of Coal India Ltd

Investors are currently awaiting official clarification from the stock exchanges or Bharat Coking Coal Ltd regarding the revised listing schedule, with Monday, January 19, emerging as the likely new listing date according to market experts.