Bharat Coking Coal's initial public offering has entered its third and final day of subscription with exceptional investor response, achieving 34.37 times subscription by Tuesday. The ₹1,300 crore issue represents an entirely offer-for-sale transaction, with promoter Coal India divesting up to 46.57 crore equity shares.

The public offer, priced within a band of ₹21-23 per share, allows investors to apply for a minimum of one lot comprising 600 shares, with additional applications in multiples thereof. IDBI Capital Markets & Securities and ICICI Securities Limited serve as Book Running Lead Managers, while KFin Technologies Limited acts as the registrar to the issue.

Strong Subscription Across Categories

The IPO has witnessed robust demand across all investor categories, with particularly strong interest from non-institutional participants:

The issue achieved full subscription on its opening day Friday, demonstrating strong market appetite for the coal sector offering.

Grey Market Premium and Listing Timeline

Bharat Coking Coal's grey market premium currently stands at ₹10.6, according to market sources. This premium suggests a potential listing price of ₹33.6 per share, indicating possible gains of 46.09% for investors at the upper price band. However, grey market premiums are speculative and do not represent official data.

The company has outlined a clear timeline for the listing process:

Bharat Coking Coal will commence trading on both BSE and NSE on January 16.

Financial Performance Overview

The company's recent financial results present a mixed picture. Net profit declined from ₹1,564 crore in FY24 to ₹1,240 crore in FY25, though this remained significantly higher than the ₹665 crore recorded in FY23.

For the first half of FY26, the company reported profit after tax of ₹124 crore, substantially lower than ₹749 crore in the corresponding period of the previous year. Revenue for the same period stood at ₹5,659 crore compared to ₹6,846 crore in the first half of FY25.

Operational Achievements

Despite recent financial challenges, Bharat Coking Coal has demonstrated strong operational performance. The company achieved record coking coal output of 39.11 million tonnes in FY24 through strategic deployment of heavy earth-moving machinery. The company has maintained a compound annual growth rate of 5.80% in coking coal production from FY23 to FY25, reflecting its focus on capacity expansion and operational efficiency.

Bharat Coking Coal Ltd's initial public offering has concluded its three-day bidding period with remarkable investor response, achieving a subscription rate of 33.67 times as of the final day on January 13. The Coal India subsidiary's IPO, which opened for bidding on January 9, demonstrated strong market appetite from the outset, getting fully subscribed within minutes of opening and reaching 8.09 times subscription on the first day.

IPO Structure and Pricing Details

The public offering represents a complete offer for sale by Coal India, which maintains 100% ownership in Bharat Coking Coal. The IPO is structured with specific parameters designed to attract retail and institutional investors.

All proceeds from the IPO will be allocated to Coal India, as this represents a divestment of the government-owned entity's subsidiary rather than a capital raising exercise for Bharat Coking Coal itself.

Grey Market Premium Analysis

The grey market activity surrounding Bharat Coking Coal shares has shown significant premium trends, indicating strong investor sentiment ahead of the listing. Current grey market premium stands at ₹10.60 per share, suggesting potential listing gains.

Analysis of the last 11 sessions of grey market activities reveals a downward trend from the peak premium levels, though the current premium still indicates substantial potential returns for successful applicants.

Timeline and Listing Schedule

The IPO follows a structured timeline for allotment and listing processes. Following the conclusion of bidding on January 13, the company will proceed with standard post-IPO procedures.

The rapid timeline from bidding conclusion to listing reflects the streamlined process for established subsidiary companies with clear operational track records.

Market Response and Subscription Pattern

The exceptional subscription rate of 33.67 times demonstrates robust institutional and retail investor confidence in the coal sector and Bharat Coking Coal's market position. The immediate full subscription within minutes of opening on January 9 indicated pent-up demand for exposure to the coking coal segment through this public market opportunity.

The anchor investor participation of ₹273 crore provided initial validation and price discovery support, contributing to the overall success of the public offering. This level of institutional backing typically signals confidence in the company's fundamentals and growth prospects within the coal industry ecosystem.