Bharat Coking Coal Limited (BCCL) commenced its initial public offering on January 9, 2026, marking the first mainboard IPO of the year. The wholly owned subsidiary of Coal India Limited, recognized as India's largest coking coal producer, has set the price band at ₹21-23 per share with subscription closing on January 13, 2026.

IPO Structure and Fundraising Details

The public offering represents an entirely offer for sale by Coal India, which currently maintains 100% ownership in BCCL. The company targets raising ₹1,071 crore at the upper price band.

The issue allocation follows standard IPO norms with 50% reserved for qualified institutional buyers, 35% for non-institutional investors, and 15% for retail investors.

Strong Anchor Investor Response

BCCL successfully raised ₹273.1 crore from anchor investors ahead of the public offering. The company allotted 11,87,53,500 equity shares to institutional investors at ₹23 per share, the upper end of the price band.

Prominent anchor investors include:

• Life Insurance Corporation of India
• Societe Generale
• Copthall Mauritius Investment Ltd
• Citrine Fund
• M7 Global Fund PCC–ASAS Global Opportunities Fund
• Maybank Securities
• Rajasthan Global Securities Pvt Ltd

Domestic mutual funds received significant allocation, with 71,739,600 equity shares distributed across eight schemes from three fund houses, including UTI Dividend Yield Fund, Nippon India Small Cap Fund, and Bandhan Small Cap Fund.

Grey Market Premium Indicates Strong Demand

The IPO has generated considerable market interest, reflected in the grey market premium of ₹9.25. Based on the upper price band of ₹23 per share, this translates to an estimated listing price of ₹32.25, suggesting potential listing gains of approximately 40.22%.

Company Operations and Performance

According to Crisil, BCCL holds the position as India's largest coking coal producer. The company's operational footprint includes 34 mines comprising four underground mines, 26 opencast mines, and four mixed mines as of September 30, 2025.

BCCL's production performance for the six months ended September 30, 2025, reached 15.75 million tonnes compared to 19.09 million tonnes in the corresponding period of the previous year. This represents the company's substantial scale in India's coking coal sector, operating under the Coal India umbrella.

Bharat Coking Coal Ltd. (BCCL), a wholly-owned subsidiary of Coal India Ltd., is set to launch 2026's first mainboard initial public offering. The three-day public issue opens for subscription on Friday, January 9, and closes on Tuesday, January 13, aiming to raise ₹1,071 crore through an offer for sale.

Strong Anchor Investor Response

Ahead of the public issue, BCCL successfully raised ₹273.13 crore from anchor investors on January 8. Life Insurance Corporation of India emerged as the largest anchor investor, acquiring 3.39 crore equity shares worth ₹78 crore. The anchor investor allocation demonstrates strong institutional confidence in the offering.

Brokerage Recommendations and Valuation

SBI Securities has recommended investors subscribe to the issue at the cut-off price, noting that at the upper band of ₹23, the issue is valued at an EV/EBITDA multiple of 6.4x on post-issue capital. The brokerage highlighted BCCL's position as India's largest coking coal producer, accounting for 58.5% of domestic production in FY25, with estimated reserves of 7.91 billion tonnes and 34 operational mines.

Anand Rathi recommended subscribing for listing gains, stating that at 8.64x FY25 earnings at the upper band, the valuation appears fair given the company's consistent track record and strong financial metrics. Mehta Equities also advised subscription for listing gains, citing BCCL's dominant position in India's coking coal value chain and Coal India's technical and financial backing.

Financial Performance and Business Metrics

BCCL has demonstrated robust financial growth with revenue, EBITDA, and profit CAGR of 4.6%, 88.1%, and 36.6% respectively between FY23 and FY25. The company maintains EBITDA margins of 12.7% and return on capital employed at 18.2% in FY25, reflecting operational efficiency in the coking coal sector.

Issue Structure and Investment Details

The IPO is entirely an offer for sale, through which parent Coal India will divest a 10% stake. Priced between ₹21 to ₹23 per share, the company will offer 46.57 crore equity shares. Retail investors can apply for a minimum lot of 600 shares, requiring an investment of ₹13,800 at the upper price band.

The allocation structure reserves 35% for retail investors, 50% for qualified institutional buyers, and 10% for non-institutional investors. Additionally, shares worth ₹107 crore have been reserved for eligible Coal India shareholders, with investors holding shares on or before January 1, 2026, eligible for the shareholder quota.

Market Expectations and Listing Timeline

Bharat Coking Coal shares are commanding a grey market premium of approximately 50%, indicating strong listing expectations. At the upper price band, the company is expected to achieve a post-issue market capitalisation of around ₹10,711 crore. Post-listing, Coal India's stake will decrease to 90%, remaining above minimum public shareholding requirements.

The basis of allotment is scheduled for January 14, with stock market debut expected on Friday, January 16. IDBI Capital and ICICI Securities serve as book running lead managers for the issue.