Bharat Coking Coal IPO Day 2 Highlights: BCCL IPO GMP signals 47% listing pop — Issue booked 33.67x. Should you bid?

Bharat Coking Coal IPO entered its last day of bidding today. You can track the latest updates here

A mix of global and domestic institutions participated in the anchor round of the company's IPO subscription.

These companies included Life Insurance Corporation, Societe Generale, Copthall Mauritius Investment Ltd, Citrine Fund, M7 Global Fund PCC – ASAS Global Opportunities Fund, Maybank Securities and Rajasthan Global Securities.

Out of the total allocation, 7.17 crore were allocated to 3 domestic mutual funds through 8 schemes, Fortune reported.

Bharat Coking Coal was India’s largest coking coal producer in fiscal 2025, according to a Crisil report.

The company produces various grades of raw coking and non-coking coal and washed coal along with its by-products for applications primarily in the steel, power and cement industries.

The company, over the years, has expanded its operations significantly, following its inception in 1972, with coal production increasing from 30.51 million tonnes in Fiscal 2022 to 40.50 million tonnes in Fiscal 2025, which is an increase of 32.74% over Fiscal 2022.

On the financial front, Bharat Coking Coal reported ₹13,802 crore in revenue and profit of ₹1,204 crore in FY25.

Canara Bank Securities indicated that, given its association with Coal India, a flourishing steel industry, and robust fundamentals, we maintain an optimistic outlook on Bharat Coking Coal.

Nonetheless, there are concerns regarding seasonal variations, as demonstrated in the first half of this year, where the reported figures fell short due to significant rainfall in the Dhanbad area.

The brokerage advises to "SUBSCRIBE" to the offering for long-term profits for investors with a "Medium to High" risk tolerance.

Bharat Coking Coal IPO basis of allotment of shares will be finalised on Wednesday, 14 January, 2026.

The company will initiate refunds the next day, on Thursday, 15 January , while the shares will be credited to the demat account of allottees on the same day following refund.

Bharat Coking Coal share price is likely to be listed on BSE and NSE on Friday, January 16.

Subscription rate:

Shareholder: 43.03 times

Employees: 2.62 times

Retail Individual Investors (RIIs): 26.94 times

Non-Institutional Investors (NIIS): 96.36 times

Qualified Institutional Buyers (QIBs): 1.44 times

Bharat Coking Coal IPO entered day 2 of bidding, reflecting a strong momentum as the grey market premium stood at over 46% at around 6:30 pm on Monday, 12 January.

GMP refers to the unofficial price at which shares trade before listing, indicating investor demand and expected listing gains. An IPO with a high GMP suggests strong interest and a potential listing pop, while a negative GMP signals weak demand.

Bharat Coking Coal IPO will open for last and final day of bidding on Tuesday, January 13. Investors can apply for the IPO till 5 pm tomorrow which has already seen a bumper over 33x bids as of second day.

BCCL offers a compelling investment opportunity in India’s structurally constrained coking coal market, supported by its position as the largest domestic producer, strong parentage under Coal India Limited, and long-term demand visibility from India’s 300 MTPA steel capacity target by FY2031. With 7,910 MMT of geological reserves and ~40 MMT annual production, BCCL is well placed to meet rising domestic demand, while washery expansions are expected to improve product mix and margins over the medium term.

Despite temporary H1 FY26 disruptions due to heavy rains, the company has demonstrated stable revenues and a sharp EBITDA margin expansion from 4% in FY23 to 13% in FY25, supported by a near-zero net debt balance sheet. Valuations at 5.6x FY25 EV/EBITDA remain reasonable, leading us to recommend Subscribe to the issue.

Bharat Coking Coal IPO was booked 33.67 times so far on the second day. Here's how different quotas were booked

QIB: 1.44 times

NII: 96.36 times

Retail: 26.94 times

Employee: 2.62 times

Shareholder: 44.03 times

Overall: 33.67 times

BCCL’s parent company, Coal India Ltd. (CIL), is the largest coal-producing company in the world and commanded a 74% market share in the domestic industry during FY25. BCCL benefits significantly from CIL’s strategic support and vast resources, including access to advanced technologies, a pool of skilled professionals, and robust financial backing. Additionally, BCCL leverages CIL’s technical expertise in coal mining and resource management, thereby enhancing its market recognition and credibility.

BCCL is India’s largest producer of coking coal and accounted for 58.5% of total domestic production in FY25. With estimated reserves of 7.91 billion tonnes and a network of 34 operational mines, the company is among the largest coking coal reserve holders in the country. Historically, the company has recorded revenue, EBITDA, and PAT CAGR of 4.6%, 88.1%, and 36.6%, respectively, over the FY23–FY25 period.

Going ahead, the company is expanding its washery capacity to 20.65 MTPA from the current 13.65 MTPA through the establishment of new washeries, along with the renovation of the existing Moonidih washery, which will double its operating capacity from 0.8 MTPA to 1.6 MTPA.

At the upper price band of ₹23, the issue is valued at an EV/EBITDA multiple of 6.4x based on post-issue capital. We recommend investors SUBSCRIBE to the issue at the cut-off price.

As of 1HFY26/FY25, the company’s top 10 customers contributed approximately 84% and 89% of total revenue, respectively. Additionally, a majority of BCCL’s top 10 customers are Public Sector Undertakings (PSUs), and the business is significantly reliant on them, exposing the company to risks inherent in operating with PSUs.

PSUs are subject to unique operational and regulatory constraints, including budgetary limitations, bureaucratic decision-making processes, and potential changes in government policies or priorities. Consequently, any failure by the company to maintain relationships with these customer groups, or any adverse changes affecting their financial condition, could negatively impact the company’s business.

Overall, BCCL offers a combination of scale, strong cash generation, and reasonable valuation, positioning it as a cyclical-value play linked closely to India’s steel and infrastructure growth trajectory rather than a high-growth compounding story.

— Harshal Dasani, Business Head at INVAsset PMS

A significant portion of the company’s coal production and coal handling operations is conducted through third-party contractors, exposing it to fluctuations in contractual costs and risks related to service quality. As of 1HFY26/FY25, coal extraction by third parties accounted for approximately 84% and 78%, respectively, of the company’s total coal extraction operations.

Further, certain vendors may be subject to litigation and regulatory actions. If such matters escalate or involve contractors performing critical work, they could lead to localized delays, increased administrative oversight, attract public and shareholder attention, and pose reputational risks for the company.

Considering the TTM Sep-25 EPS of ₹1.32 on a post-issue basis, the company is set to list at a P/E of approximately ~17x with a market capitalisation of ₹10,711 Cr. There are no Indian listed industry peers of comparable size and a similar line of business; therefore, it is not possible to provide an industry comparison.

We assign a “Subscribe” rating to this IPO, as the company is the largest coking coal producer in India with access to large reserves and strong parentage from Coal India Limited. Additionally, it is available at a reasonable valuation considering the company’s growth potential.

The company derives 79.38% of its revenue from raw coal, 13.25% from washed coal, and 7.37% from other by-products.

It operates across a total leasehold area of 288.31 square kilometers, covering 252.88 square kilometers of the Jharia coalfield and 35.43 square kilometers of the Raniganj coalfield.

Its operational portfolio includes:

• Opencast and underground mining projects
• Coal washeries
• Monetisation of old and idle coal washeries through the Washery Developer and Operator (“WDO”) route
• Restoration of operations in discontinued underground mines through the Mine Developer and Operator (“MDO”) model

• Leading producer of coking coal, critical to India’s steel industry.
• Established operations since 1972, with deep mining expertise.
• Strong promoter backing from the Government of India and Coal India Limited.
• Access to significant coal reserves in key coalfields.
• Integrated mining and coal processing operations.

BCCL is the largest coking coal producer in the country. The company produced 38.9 MMT of coking coal from a total production of 66.5 MMT in FY2025, capturing 58.5% of the market. Furthermore, the company has a 4% share in overall domestic coal production.

BCCL is India’s largest producer of coking coal, with estimated reserves of 7,910 MMT and a network of 34 operational mines, making it one of the largest coking coal reserve holders in the country. It benefits from strong parentage under Coal India Limited and maintains a solid financial profile while planning to restore operations in discontinued underground mines through MDOs and exploring opportunities in coal bed methane projects. With India’s steel capacity expansion driving long-term coking coal demand, BCCL’s integrated operations, modernization initiatives, and stable offtake position are favorable for the company.

At the upper price band, BCCL is available at a reasonable valuation of ~8.6x FY25 P/E and 5.5x FY25 EV/EBITDA. We have a SUBSCRIBE rating for this issue for listing gains.

Bharat Coking Coal IPO was booked 21.77 times so far on the second day. Here's how different quotas were booked

QIB: 45%

NII: 57.15 times

Retail: 19.64 times

Employee: 1.74 times

Shareholder: 29.28 times

Overall: 21.77 times

Key risks include import competition, operational dependencies, and regulatory shifts impacting coking coal viability:

Import parity pricing: Declining import prices or higher effective BCCL pricing may shift customers to imports; high ash content diverts coal to power, limiting steel use.

Contractor dependency: 84% of extraction is by third parties, exposing BCCL to cost fluctuations, service quality issues, litigations, and delays.

Customer concentration: Top 10 customers account for 84–89% of revenue, mostly PSUs, making BCCL vulnerable to budget and policy changes.

CIL reliance: Dependent on parent company for finance, technology, and HR support, and on CMPDIL for planning and surveys.

Operational/Regulatory risks: Weather events, natural disasters, labor issues (50% of employee costs), and tightening ESG regulations (net-zero targets, emissions) could impact operations.

Promoter Coal India Ltd. (100% pre-issue, 90% post-issue) is the world’s largest coal producer, accounting for 74% of India’s coal output in FY25, providing strategic and technical backing. The OFS of 46.57 Cr shares by CIL is for disinvestment. There is no pledging.

The issue is entirely an Offer for Sale (OFS) of 46.57 Cr shares by promoter Coal India Ltd., with no fresh issue. Proceeds will go to the selling shareholder (CIL) and aim to achieve broad ownership, enhance liquidity, and support PSU disinvestment goals. There are no specific objects for BCCL, but the OFS supports CIL’s capital recycling for pan-India expansions. The employee reservation of 2.33 Cr shares aids retention.

BCCL’s moat stems from unmatched reserves, geographic monopoly in prime coalfields, and CIL’s ecosystem providing a tech and funding edge over private players. Washery leadership and production scale deter entrants amid regulatory barriers, while diversification into CBM and solar fortifies resilience against coal transition risks.

Bharat Coking Coal IPO was booked 15.11 times after one hour of opening on the second day. At the end of first day, it was booked 8.09 times, signaling strong demand.

QIB: 36%

NII: 37.10 times

Retail: 14.89 times

Employee: 1.33 times

Shareholder: 19.71 times

Overall: 15.11 times

BCCL demonstrated robust financial growth over FY23–25, with revenue from operations rising from ₹12,624 Cr to ₹13,803 Cr, reflecting steady demand for coking coal despite marginal moderation in FY25. EBITDA surged dramatically from ₹497 Cr (3.9% margin) to ₹1,757 Cr (12.7% margin), driven by lower COGS, operational efficiencies, and washery expansions, though margins dipped slightly in FY25 due to higher employee and other expenses. PAT grew at a 36.6% CAGR to ₹1,240 Cr with a 9.0% margin, supported by other income and controlled depreciation.

The balance sheet strengthened, with equity expanding to ₹6,463 Cr on retained earnings, zero debt underscoring financial prudence, and assets growing to ₹17,283 Cr, fueled by capex in mines and washeries. ROE and ROCE peaked in FY24 at 29.4% and 47.2% before normalizing to 19.2% and 30.1%, indicating efficient capital utilization amid expansion. A key turning point was FY24’s margin expansion from cost optimizations.

In 1HFY26, revenue moderated to ₹5,659 Cr with compressed margins (EBITDA -3.4%, PAT 2.2%), attributable to seasonal factors and higher costs. Overall, trends signal resilience with growth levers in washeries and CBM.

BCCL benefits from vast reserves, strategic locations, and CIL backing amid rising coking coal demand driven by steel production. Washery expansions to 20.65 MTPA and CBM projects promise enhanced yields and diversification. Operational challenges like high ash content and contractor reliance persist, but the government’s coal self-sufficiency push supports growth. Revenue, EBITDA, and PAT CAGR stood at 4.6%, 88.1%, and 36.6% over FY23–25. At the upper band of ₹23, the company is valued at an EV/EBITDA of 5.5x post-issue, appearing attractive given its scale and prospects.

— Deven Choksey Research

There are no Indian listed industry peers of comparable size and similar line of business of the Company. Warrior Met Coal, Inc. and Alpha Metallurgical Resources, Inc., both listed on the New York Stock Exchange (NYSE), have been considered as the industry peers (the Listed Industry Peers), considering the nature and size of business of the companies.

Bharat Coking Coal IPO opened for the second day of bidding at 10 am today. Investors can apply for the offer till 5 pm.

Bharat Coking Coal, with a strong market share in the industry, valued at ~8.64x P/E on FY25 earnings (at the upper band), is valued fairly. Considering the company’s consistent track record & superior financial metrics, the valuation is fully priced in. Hence, we recommend subscribing to the IPO for listing gains.

— Anand Rathi

The demand for BCCL IPO remained strong from all quotas, with the qualified institutional segment (QIB) booked 30%. The non-institutional investor (NII) and retail investor quotas garnered 16.39 times and 9.26 times bids, respectively.

The employee portion was subscribed 83% and the shareholder segment 10.86 times, resulting in the overall BCCL IPO subscription status of 8.09 times.

BCCL is enjoying a strong grey market premium. According to data from investorgain.com, BCCL IPO GMP today was ₹10.6, signalling a listing price of ₹33.6 apiece, which is at an over 46% premium to the offer price of ₹23.

Shares of BCCL are expected to list on BSE and NSE later this week on January 16.