Bharat Coking Coal IPO Sees Massive 146.87x Subscription, Shares Trade at 55% Premium
Bharat Coking Coal Limited's ₹1,071.11 crore IPO achieved remarkable success with 146.87 times subscription, receiving ₹1.17 lakh crore in total bids. The issue was priced at ₹23 per share and saw exceptional demand from QIBs (310.81x) and HNIs (275.64x). The company raised ₹273.10 crore from anchor investors including LIC and other institutional participants, with shares currently trading at 55% premium.
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Bharat Coking Coal Limited has successfully completed its initial public offering with an exceptional market response, receiving bids worth ₹1.17 lakh crore against the total issue size of ₹1,071.11 crore. The company fixed its IPO price at ₹23 per share, and shares are currently trading at a premium of approximately 55% in the secondary market.
Subscription Details
The IPO witnessed overwhelming demand across all investor categories, achieving a subscription rate of 146.87 times. The company received bids for 5,095.56 crore shares against the offered 34.69 crore shares.
| Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers | 310.81 times |
| High Net-Worth Individuals | 275.64 times |
| Shareholder Reservation | 87.29 times |
| Retail Investors | 9.33 times |
| Employee Reserved Category | 5.18 times |
The Qualified Institutional Buyers category led the subscription drive, followed by strong participation from high net-worth individuals. Even the retail category, typically more conservative, showed robust demand with 9.33 times subscription.
Offer Structure and Anchor Investment
The ₹1,071.11 crore IPO represents entirely an offer for sale by Coal India, the parent company of Bharat Coking Coal Limited. Prior to the public issue, the company successfully raised ₹273.10 crore from anchor investors through the allotment of 11,87,53,500 equity shares at ₹23 per share.
| Anchor Investor Details | Information |
|---|---|
| Amount Raised | ₹273.10 crore |
| Shares Allotted | 11,87,53,500 |
| Price per Share | ₹23 |
Institutional Participation
The anchor investor base included several marquee institutional names, demonstrating strong confidence in the company's prospects. Key participants included:
- 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
Among mutual fund participants, shares were allocated to UTI Dividend Yield Fund and other UTI schemes, Nippon Life India Trustee for Nippon India Small Cap Fund, and Bandhan Small Cap Fund.
Company Background
Bharat Coking Coal Limited operates as a wholly owned subsidiary of Coal India Ltd, positioning it within India's coal sector ecosystem. The successful IPO and strong market reception reflect investor confidence in the company's business model and growth potential within the coal industry.
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