Bharat Coking Coal IPO Sees Strong Demand with 8.09x Subscription on Day 2
Bharat Coking Coal's ₹1,071 crore IPO has achieved 8.09x subscription by day 2, with particularly strong retail demand at 9.26x and NII segment at 16.39x subscription. The grey market premium of ₹10.6 suggests a 46% listing premium. Leading brokerages recommend subscription citing the company's market leadership in coking coal production, improved EBITDA margins, and attractive valuations.
*this image is generated using AI for illustrative purposes only.
Bharat Coking Coal Limited's initial public offering has demonstrated robust investor appetite, achieving 8.09 times subscription by the second day of bidding. The ₹1,071 crore offer for sale by Coal India has attracted strong participation across investor categories, with the subscription period running until January 13.
Subscription Performance Across Categories
The IPO has witnessed exceptional demand from retail and institutional segments. By 17:00 IST, the company received bids for 2,80,61,36,400 shares against the 34,69,46,500 shares on offer.
| Investor Category: | Subscription Multiple |
|---|---|
| Overall Subscription: | 8.09x |
| Retail Investors: | 9.26x |
| Non-Institutional Investors: | 16.39x |
| Qualified Institutional Buyers: | 30% (0.30x) |
Grey Market Premium and Listing Expectations
The current grey market premium stands at ₹10.6, indicating strong investor sentiment. Based on this premium and the upper price band, the estimated listing price is projected at ₹33.6 per share, representing a 46.09% premium over the issue price of ₹23.
| GMP Parameter: | Value |
|---|---|
| Current GMP: | ₹10.6 |
| Estimated Listing Price: | ₹33.6 |
| Premium over Issue Price: | 46.09% |
| Highest GMP Recorded: | ₹16.25 |
| Lowest GMP Recorded: | ₹9.25 |
Analysis of the last 10 sessions shows the current GMP indicates a downward trend from previous highs.
Brokerage Recommendations
Leading financial institutions have issued positive recommendations for the IPO. Canara Bank Securities maintains an optimistic outlook, recommending "SUBSCRIBE" for long-term gains, particularly for investors with medium to high risk tolerance. The brokerage highlights the company's association with Coal India and robust fundamentals, while noting concerns about seasonal variations due to rainfall impacts in the Dhanbad area.
Nirmal Bang advises subscription, noting the company's stable revenue streams and significant EBITDA margin improvement from 4% in FY23 to 13% in FY25. The brokerage considers the 5.6x FY25 EV/EBITDA valuation attractive, supported by a nearly debt-free balance sheet.
Anand Rathi suggests subscription for potential listing gains, citing the company's market leadership and pricing at approximately 8.64 times price-to-earnings ratio based on FY25 earnings.
Company Profile and Market Position
Bharat Coking Coal, a wholly-owned subsidiary of Coal India, holds the leading position in India's coking coal production sector. In fiscal year 2025, the company accounted for approximately 58.5% of the nation's coking coal production. The company possesses an estimated 7.91 billion tonnes of coking coal reserves, positioning it as the primary domestic source of high-grade coking coal essential for steel production.
IPO Timeline and Valuation Metrics
The offer consists entirely of an offer for sale by Coal India, which holds a complete 100% stake in Bharat Coking Coal. Prior to the public offering, the company secured ₹273.10 crore from anchor investors.
| Timeline Event: | Date |
|---|---|
| Subscription End: | January 13 |
| Basis of Allotment: | January 14 |
| Refund Initiation: | January 15 |
| Share Credit to Demat: | January 15 |
| Expected Listing: | January 16 |
At the upper price range, the issue is valued at approximately 9 times price-to-earnings ratio and nearly 2 times price-to-book ratio according to offer documents. All proceeds from the ₹1,071 crore IPO will be directed to Coal India as the selling shareholder.
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