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.

Bharat Coking Coal's ₹1,071 crore initial public offering has entered its second day of bidding with remarkable investor enthusiasm, demonstrating strong market confidence in India's largest coking coal producer. The issue achieved full subscription within just 30 minutes of opening on Day 1, setting the tone for what appears to be a highly successful public offering.

Strong Grey Market Performance

The IPO is currently generating significant interest in the grey market, trading at a premium of ₹11 over the upper issue price of ₹23. This represents approximately 46% premium, indicating positive market sentiment ahead of the listing. Based on this grey market premium, the stock is expected to list around ₹34 per share, though actual listing prices may vary depending on market conditions.

Impressive Subscription Numbers

By the end of the first day, the issue demonstrated exceptional investor demand across categories:

The issue received bids for 280.61 crore shares against the 34.69 crore shares on offer. The strong response was particularly driven by robust participation from retail investors and non-institutional investors, reflecting high confidence in the company's prospects.

Company Profile and Market Position

Bharat Coking Coal holds a dominant position as India's largest producer of coking coal and the only major domestic supplier of prime coking coal, a critical raw material for steel production. The company contributed approximately 58.5% of India's domestic coking coal output in FY25, underlining its strategic importance to the steel sector.

Financial Performance

The company reported strong financial results in FY25, demonstrating its robust operational capabilities:

Bharat Coking Coal operates as a wholly owned subsidiary of Coal India, the world's largest coal producer, benefiting from strong technical expertise, financial backing, and large-scale operational strength.

IPO Details and Analyst Recommendations

The IPO is scheduled to close on January 13, with shares priced between ₹21 to ₹23 per share. The issue consists entirely of an offer for sale by Coal India, with a face value of ₹10 and minimum bid requirement of 600 shares. The company's equity shares will be listed on both NSE and BSE.

Anand Rathi Research considers the company fairly valued at 8.64x P/E based on FY25 earnings at the upper price band, recommending subscription for listing gains. SBI Securities notes the company's valuation at 6.4x EV/EBITDA multiple based on post-issue capital and recommends subscribing at the cut-off price. The IPO is being managed by IDBI Capital Markets & Securities Limited and ICICI Securities Limited as book-running lead managers, with KFin Technologies Limited as the registrar.