Bharat Coking Coal IPO Opens Today: Strong GMP Signals Robust Listing Gains
Bharat Coking Coal Limited launches its ₹1,071 crore IPO today, marking 2026's first mainboard offering with strong grey market interest showing premiums near 50%. The Coal India subsidiary, controlling 58.50% of India's coking coal production, is divesting 10% stake through offer for sale, with shares priced at ₹21-23 and listing expected January 16.
*this image is generated using AI for illustrative purposes only.
Bharat Coking Coal Limited launches the first mainboard initial public offering of 2026 today, January 9, with its ₹1,071.11 crore issue attracting strong grey market interest. The three-day book-built issue for the Coal India Limited subsidiary comprises entirely an offer for sale of 46.57 crore equity shares, priced at ₹21-23 per share, with eligible employees receiving a ₹1.00 discount.
Strong Grey Market Premium Signals Investor Interest
Shares are trading with a grey market premium hovering close to 50%, indicating robust listing expectations despite some recent easing. While the premium has moderated marginally in recent sessions, it continues to signal healthy debut gains, though market participants caution that grey market premiums reflect sentiment in the unlisted market and can change quickly.
Retail investors can apply for a minimum lot of 600 shares, requiring an investment of ₹13,800 at the upper end of the price band. The issue closes on January 13, with allotment expected on January 14 and listing scheduled for January 16 on both BSE and NSE.
| IPO Timeline and Structure: | Details |
|---|---|
| Opening Date: | January 9, 2026 |
| Closing Date: | January 13 |
| Price Band: | ₹21-23 per share |
| Grey Market Premium: | Close to 50% |
| Minimum Investment: | ₹13,800 (600 shares) |
| Listing Date: | January 16 |
Strategic Divestment and Allocation Structure
Through this IPO, Coal India is divesting a 10% stake via the offer for sale, reducing its holding from 100% to 90% while remaining well above minimum public shareholding requirements. The issue allocation stands at 35% for retail investors, 50% for qualified institutional buyers, and 10% for non-institutional investors.
Shares worth ₹107.00 crore have been set aside for eligible Coal India shareholders, with investors holding Coal India shares on or before January 1, 2026, eligible to apply under the shareholder quota. At the upper price band, Bharat Coking Coal is expected to command a post-issue market capitalisation of approximately ₹10,711.00 crore.
| Allocation Structure: | Percentage | Amount |
|---|---|---|
| Retail Investors: | 35% | - |
| Qualified Institutional Buyers: | 50% | - |
| Non-Institutional Investors: | 10% | - |
| Coal India Shareholders: | Special Quota | ₹107.00 cr |
| Post-Issue Market Cap: | - | ₹10,711.00 cr |
Dominant Market Position and Strategic Assets
Established in 1972, Bharat Coking Coal Limited operates 32 mining facilities across Jharia in Jharkhand and Raniganj in West Bengal, covering 288.31 square kilometers of leasehold area. The company holds substantial coking coal reserves of 7.91 billion tonnes, accounting for roughly 21.50% of India's coking coal resources and contributing 58.50% of domestic coking coal production.
Coal production has steadily increased from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25, demonstrating consistent operational growth. The company primarily operates in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal, maintaining its position as India's largest coking coal producer.
| Operational Performance: | FY22 | FY25 | Market Position |
|---|---|---|---|
| Total Coal Production: | 30.51 MT | 40.50 MT | India's largest |
| Market Share: | - | 58.50% | Domestic coking coal |
| Reserve Holdings: | - | 7.91 billion tonnes | 21.50% of India's reserves |
| Mining Facilities: | - | 32 facilities | Jharia & Raniganj |
Financial Performance and Valuation Metrics
Financially, the company reported revenue of ₹14,402.00 crore in FY25, a decline of 1.70% from ₹14,653.00 crore in FY24. Profit fell more significantly by 20.00% to ₹1,240.00 crore from ₹1,564.00 crore in the previous year. Despite recent decline, the company demonstrated strong growth momentum with sales and profit after tax growing at CAGR of 5.00% and 37.00% respectively over FY23-25.
The company reported EBITDA margins of 12.70% and return on capital employed of 18.20% in FY25. At the upper price band of ₹23, the issue is valued at approximately 5.50 times EV/EBITDA and 8.60 times P/E based on FY25 numbers.
| Financial Metrics: | FY24 | FY25 | Change |
|---|---|---|---|
| Revenue: | ₹14,653.00 cr | ₹14,402.00 cr | -1.70% |
| Profit After Tax: | ₹1,564.00 cr | ₹1,240.00 cr | -20.00% |
| EBITDA Margin: | - | 12.70% | - |
| RoCE: | - | 18.20% | - |
| P/E Multiple: | - | 8.60x | - |
Strategic Context and Future Plans
The proposed listing is part of Coal India's broader plan to take all its subsidiaries public by FY30. IDBI Capital and ICICI Securities are the book running lead managers to the issue. Coal India shares are currently trading at ₹425.20, down 1.49%.
Despite strong market position, the company faces challenges including high client concentration with top 10 customers contributing over 80.00% of revenues, and generates nearly 75.00% revenue from the power sector, which faces challenges from rising renewable energy adoption.
17
