Bharat Coking Coal's initial public offering has garnered strong investor interest, achieving 14.77 times subscription on its second day of bidding. The ₹1,300 crore issue, which opened for subscription on Friday, was fully subscribed on its first day itself, driven primarily by demand from non-institutional investors.

IPO Structure and Timeline

The public offering is entirely an offer for sale, with promoter Coal India divesting up to 46.57 crore equity shares. The issue is priced within a band of ₹21-23 per share, allowing investors to apply for a minimum of one lot comprising 600 shares.

IDBI Capital Markets & Securities and ICICI Securities Limited serve as Book Running Lead Managers, while KFin Technologies Limited acts as the registrar. Share allotment is scheduled for January 14, with credit to demat accounts on January 15. The company will list on BSE and NSE on January 16.

Subscription Performance by Category

The IPO has witnessed varied response across investor categories, with non-institutional investors showing the highest enthusiasm.

Grey Market Premium Indicates Strong Listing

The grey market premium for Bharat Coking Coal shares has risen to ₹10.70, according to market sources. This premium suggests a potential listing price of ₹33.70 per share, indicating possible gains of 46.52% for investors who secure allotment at the upper price band. However, grey market premiums are speculative and do not represent official data.

Financial Performance Overview

Bharat Coking Coal's recent financial performance presents a mixed picture across different periods. The company reported net profit of ₹1,240 crore for FY25, compared to ₹1,564 crore in FY24 and ₹665 crore in FY23.

For the first half of FY26, the company's profit after tax stood at ₹124 crore, significantly lower than ₹749 crore in the corresponding period of the previous year. Revenue from operations for H1 FY26 was ₹5,659 crore compared to ₹6,846 crore in the same period last fiscal.

Production Achievements and Growth

Despite financial fluctuations, Bharat Coking Coal has demonstrated consistent production growth. The company achieved record coking coal output of 39.11 million tonnes in FY24, supported by strategic deployment of heavy earth-moving machinery. BCCL has maintained a compound annual growth rate of 5.80% in coking coal production from FY23 to FY25, reflecting its operational efficiency and capacity expansion efforts.

Bharat Coking Coal's initial public offering maintained its strong investor appeal on the second day of bidding on January 12, with the ₹1,071 crore issue achieving significant oversubscription. The maiden public offering from India's largest coking coal producer and wholly-owned subsidiary of Coal India demonstrated robust market demand across investor categories.

Subscription Details

The IPO received overwhelming response from investors, with subscription data showing strong participation across all categories. As of 10:18 am on Day 2, the issue attracted substantial investor interest.

The company received bids for nearly 417.48 crore shares against the total offer size of 34.69 crore shares, highlighting the strong market appetite for the issue.

Grey Market Premium Trends

The unlisted shares of Bharat Coking Coal showed positive momentum in the grey market, with premiums steadily increasing since the IPO opening. According to Investorgain data, the shares were trading at ₹33.70 per share, representing a 46.52% premium over the IPO price.

IPO Watch reported similar trends with the unlisted shares trading at a 45.65% premium over the IPO price, confirming the positive market sentiment.

Issue Structure and Timeline

Bharat Coking Coal launched its IPO to raise ₹1,071.11 crore entirely through an offer for sale of 46.57 crore equity shares by promoter Coal India. The public subscription period runs from January 9 to January 13, with shares priced in the band of ₹21-23 per share.

At the upper price band, the Mini Ratna company commands a valuation of over ₹10,700 crore. The shares are scheduled for listing on both BSE and NSE on January 16.

Analyst Recommendations

Domestic brokerages have provided positive recommendations for the IPO. Anand Rathi advised investors to 'subscribe' to the issue for listing gains, noting that the company trades at approximately 8.64x P/E on FY25 earnings at the upper band, which they consider fair valuation. The brokerage highlighted the company's consistent track record and superior financial metrics.

Deven Choksey maintained a 'Subscribe' rating for long-term investors, suggesting potential gains of 1.5-2x post-listing stability. The firm emphasized the company's defensive yield characteristics with growth opportunities in the domestic coal sector.