Bharat Coking Coal's initial public offering has concluded with remarkable investor response, achieving a total oversubscription of 32.02 times. The coal sector company witnessed strong demand across all investor categories, reflecting significant market interest in the offering.

Subscription Performance Across Categories

The IPO demonstrated varied levels of enthusiasm across different investor segments. Non-institutional investors led the subscription drive, while retail participation also exceeded expectations significantly.

Strong Non-Institutional Demand

The non-institutional investor categories emerged as the primary drivers of the oversubscription. Small high net worth individuals (sHNI) demonstrated the highest interest with 102.98 times subscription, closely followed by big high net worth individuals (bHNI) at 92.91 times.

Retail and Employee Participation

Retail investors showed substantial confidence in the offering, subscribing 26.91 times their allocated portion. This level of retail participation indicates strong grassroots interest in the coal sector investment opportunity. Company employees also participated actively, with their reserved portion being subscribed 2.62 times.

Institutional Response

Qualified institutional buyers subscribed to 1.44 times their allocated portion, representing measured but positive institutional participation. This level of QIB subscription suggests cautious optimism from large institutional investors regarding the company's prospects.

The overall subscription pattern reflects broad-based investor interest across categories, with particularly strong response from individual and non-institutional segments, positioning Bharat Coking Coal's market debut favorably.

Bharat Coking Coal's initial public offering has garnered exceptional investor interest on its second day of bidding, with the issue being subscribed 24.37 times as of Friday afternoon. The wholly-owned subsidiary of Coal India opened its IPO on January 9 and will continue accepting bids until January 13.

Subscription Details

According to NSE data as of 1:50 pm on Friday, the IPO attracted significant investor participation across all categories:

The qualified institutional buyers segment remains the only category yet to be fully subscribed, with 56% subscription recorded so far.

Grey Market Performance

In the unofficial market, Bharat Coking Coal shares are trading at approximately 47% premium to the IPO price. However, grey market premiums are known to be volatile and reflect sentiment in the unlisted market rather than guaranteed listing performance.

Issue Structure and Pricing

The IPO represents an entirely offer-for-sale transaction through which parent company Coal India is divesting a 10% stake. Key issue parameters include:

Allocation and Reservations

The company has structured the allocation to accommodate different investor categories:

• Retail Investors: 35% allocation
• Qualified Institutional Buyers: 50% allocation
• Non-Institutional Investors: 10% allocation
• Coal India Shareholders: ₹107 crore reserved quota

Investors holding Coal India shares on or before January 1, 2026, are eligible to apply under the shareholder quota. Additionally, eligible employees will receive a discount of ₹1 per share.

Company's Growth Plans

Manoj Kumar Agarwal, Chairman and Managing Director of Bharat Coking Coal, outlined the company's expansion strategy during an interaction with CNBC-TV18. The company currently produces 40.5 million tonnes and aims to increase production to 56 million tonnes by 2030.

The growth strategy encompasses:

• Expanding open-cast mining operations
• Reviving underground operations using modern technologies including continuous miners
• Monetising old, stopped underground mines
• Amalgamating smaller open-cast mines into larger, more efficient operations

Market Position and Timeline

Bharat Coking Coal holds the position of India's largest coking coal producer, accounting for approximately 58.5% of domestic output in FY25. The company primarily operates in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.

Following the IPO completion, Coal India's stake will reduce to 90%, which remains well above the minimum public shareholding requirement. IDBI Capital and ICICI Securities serve as the book running lead managers for the issue.

The basis of allotment is scheduled for January 14, with the stock expected to list on the exchanges on January 16.