Bharat Coking Coal IPO Day 3 Highlights: BCCL IPO GMP signals 46% listing pop. Issue booked 146.80x

The company’s mines are strategically located in the Jharia (Jharkhand) and Raniganj (West Bengal) coalfields, which benefit from well-developed infrastructure and logistics networks, along with vast coal reserves.

Additionally, the company operates coking coal washeries across five facilities and is a domestic leader in coking coal washery capacity, with an owned operational capacity of 13.65 million tonnes per annum (MTPA).

Further, the company is in the process of developing and commissioning three new washeries with a combined capacity of 7.0 MTPA, along with the renovation of the 1.6 MTPA Moonidih coal washery, which will further enhance its existing washing capacity.

If the price of imported coking coal declines, or if the effective price of BCCL’s coal to customers increases, customers may choose to meet a larger portion of their requirements through imports rather than sourcing coal from the company.

Further, the quality or grade of coking coal produced by the company is considered inferior to that of coal from other countries, primarily due to its higher ash content. As a result, a significant portion of its coking coal is diverted to power plants, limiting its potential use in the steel industry.

India’s coking coal sector faces a significant demand–supply gap, with BCCL playing a pivotal role as it accounts for 58.5% of domestic production. Rising steel demand continues to drive coking coal requirements amid heavy import dependence (over 80%), while the government is pushing for higher domestic output.

Coking coal demand is projected to increase from 67 million tonnes (MT) in FY25P to 138 million MT by FY35E, implying a CAGR of 7.5%, supported by steel capacity expansion to 300 million tonnes per annum (TPA). Domestic production remains limited at around 20 million MT, widening the supply gap. Key demand drivers include infrastructure development, urbanisation, and Atmanirbhar Bharat policies that favour domestic miners such as BCCL. Ongoing washery modernisation is expected to improve yields and efficiency.

BCCL demonstrated robust financial growth over FY23–25, with revenue from operations increasing from ₹12,624 crore to ₹13,803 crore, reflecting steady demand for coking coal despite marginal moderation in FY25. EBITDA surged significantly from ₹497 crore (3.9% margin) to ₹1,757 crore (12.7% margin), driven by lower cost of goods sold, operational efficiencies, and washery expansions. However, margins dipped slightly in FY25 due to higher employee and other expenses.

PAT grew at a 36.6% CAGR to ₹1,240 crore, with a 9.0% margin, supported by other income and controlled depreciation.

The balance sheet strengthened with equity expanding to ₹6,463 crore on the back of retained earnings, zero debt underscoring financial prudence, and total assets rising to ₹17,283 crore, driven by capex in mines and washeries. ROE and ROCE peaked in FY24 at 29.4% and 47.2%, respectively, before normalising to 19.2% and 30.1%, indicating efficient capital utilisation amid expansion. A key turning point was FY24’s margin expansion resulting from cost optimisation initiatives.

In H1 FY26, revenue moderated to ₹5,659 crore, with compressed margins (EBITDA margin of 3.4% and PAT margin of 2.2%), attributable to seasonal factors and higher costs. Overall, the trends indicate resilience, with future growth supported by washery expansions and CBM initiatives.

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 government coal self-sufficiency push supports growth. Revenue, EBITDA, PAT CAGR stood at 4.6%, 88.1%, 36.6% over FY23-25. At upper band of 23, valued at EV/EBITDA of 5.5x post-issue, appearing attractive given scale and prospects.

— Deven Choksey Research

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

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

Bharat Coking Coal IPO Day 3 LIVE: Bharat Coking Coal IPO subscription status was 146.09 times on day 3. The retail portion is subscribed 48.04x, and NII portion has been booked 257.52 times, Qualified Institutional Buyers (QIBs) portion received 310.81 times bids. The employee portion was subscribed 5.05 times, while the shareholders portion was booked 86.21 times.

The company has received bids for 50,68,53,82,200 shares against 34,69,46,500 shares on offer, at 15:57 IST, according to data on BSE.

1. Utilize the resources effectively to sustain and expand operations, driving growth and maximizing efficiency
2. Transform discontinued mines into profitable ventures through resource monetization, and strategic repurposing
3. Monetize, modernize, and renovate the washeries
4. Implement energy conservation methods to enhance operational efficiency and reduce environmental impact
5. Leverage the resources in the Jharia coalfields to drive growth
6. Explore opportunities in coal-bed methane projects to harness untapped energy resources

Bharat Coking Coal IPO Day 3 LIVE: Indsec Securities indicated that as India aims for 300 MT of steel capacity by FY30, the need for coking coal is expected to increase (from 63 MT in FY24 to 138 MT in FY30). Although the high ash content of domestic coal restricts its direct application, BCCL's robust washery operations place it in a favorable position to capitalize on the growing demand for washing and blending.

"We assign a “Neutral” stance given the elevated TTM valuation, though increased blending of domestic coking coal at steel mills and transforming key mines and washeries remains a key upside trigger," said the brokerage firm.

Bharat Coking Coal IPO Day 3 LIVE: Check out the following key risks -

1. Structural constraints at Jharia Coalfields
2. High dependence on regulated pricing and policy framework
3. Execution risk in washery expansion and product mix shift
4. Dependence on steel sector demand and import substitution dynamics

Bharat Coking Coal IPO Day 3 LIVE: During the six months ending September 30, 2025, their coal production was 15.75 million tonnes, compared to 19.09 million tonnes in the same period in 2024. In Fiscal 2024, they produced 39.11 million tonnes of coking coal and 1.99 million tonnes of non coking coal, which was higher than their earlier production records.

Bharat Coking Coal IPO Day 3 LIVE: Investors have the option to apply through ASBA (either online or offline) or using UPI.

For Online ASBA/UPI:

Access your brokerage platform.

Go to the IPO section.

Choose "Bharat Coking Coal Ltd IPO".

Provide the bidding information, including the number of lots, price, and UPI ID if necessary.

Submit your application and confirm the mandate by 5 PM on the final day of the offering.

For Offline:

Request a form from your broker or the exchange.

Complete the form and submit it to your broker.

Bharat Coking Coal IPO Day 3 LIVE: As a wholly-owned subsidiary of Coal India Limited, BCCL leverages the vast resources of the world’s largest coal-producing company. BCCL relies on CMPDIL (a fellow CIL subsidiary - Central Mine Planning & Design Institute Limited ) for specialized technical expertise, geological surveys, mine planning, and resource assessment. The company benefits from financial, technical, and human resources allocated by CIL, including executive manpower seconded directly from the parent company.

Bharat Coking Coal IPO Day 3 LIVE: As per Nirmal Bang, BCCL is well-positioned to cater to the growing domestic demand with geological reserves of 7,910 MMT and an annual production of approximately 40 MMT. The ongoing expansion of washery operations is anticipated to enhance the product mix and improve margins in the medium term.

“Although there may be temporary disruptions in the first half of FY26 due to heavy rainfall, the company has shown stable revenue and a significant increase in EBITDA margin from 4% in FY23 to 13% in FY25, aided by a nearly debt-free balance sheet. With valuations standing at 5.6x FY25 EV/EBITDA, they appear reasonable, prompting us to advise subscribing to the issue,” said the brokerage.

Bharat Coking Coal IPO Day 3 LIVE: Check out three rationales

1. India’s Leading Coking Coal Producer with Strategic Mining Footprint.
2. Well Positioned to Benefit from India’s Growing Coking Coal Demand.
3. Strong parentage of Coal India Limited

Bharat Coking Coal IPO Day 3 LIVE: BCCL is the largest coking coal producer in India, accounting for 58.50% of the domestic coking coal production in Fiscal 2025. As of September 30, 2025, the company operates 34 operational mines, including 4 underground, 26 opencast, and 4 mixed mines. Its operations are concentrated in a total leasehold area of 288.31 square kilometers, with 252.88 sq. km in the Jharia coalfield and 35.43 sq. km in the Raniganj coalfield.

Bharat Coking Coal IPO Day 3 LIVE: Anand Rathi stated that Bharat Coking Coal, which holds a significant share in the market, is valued at approximately 8.64 times the price-to-earnings ratio based on FY25 earnings (at the upper range) and is considered appropriately priced. Given the company's steady performance and strong financial indicators, this valuation appears to be fully reflected.

Therefore, the brokerage suggests that investors subscribe to the IPO for potential listing profits.

Bharat Coking Coal IPO Day 3 LIVE: Check out four competitive strengths of the firm:

1. Largest Coking Coal Producer
2. Strategic Location Advantage with Integrated Large-Scale Washeries
3. Well-Positioned to Benefit from Rising Coking Coal Demand in India
4. Consistent Financial Performance with Strong Balance Sheet

Bharat Coking Coal IPO Day 3 LIVE: Divestment and Listing Advantages: The IPO allows Coal India to partially divest its stake while offering listing advantages like improved transparency and market discipline.

No Funds for the Company: Since it is solely an Offer for Sale (OFS), all proceeds are directed to the selling shareholder (Coal India Limited), and no funds are received by the company itself.

Shareholder Allocation: A specific reservation for shareholders of Coal India encourages greater public involvement.

Bharat Coking Coal IPO Day 3 LIVE: Check out the following risks

1. Geographic Concentration and Reserve Depletion Risk
2. High Revenue Dependence on Raw Coking Coal Demand
3. High Customer Concentration Risk
4. Dependence on Limited Vendors and Service Disruption Risk
5. Environmental and Climate Risk

Bharat Coking Coal IPO Day 3 LIVE: Adroit Financial Services Private Ltd said that the company has coal reserves of around 8 billion tonnes, supporting operations for nearly 100 years.

Mining operations, particularly opencast mines, remain vulnerable to adverse weather conditions; in H1 FY26, extremely heavy rainfall disrupted operations and led to a decline in revenues, highlighting execution and climate-related risks to production and financial performance.

“Therefore, it is recommended to “Subscribe” to the IPO for long-term investment, considering its growth potential,” said the brokerage.

Bharat Coking Coal IPO Day 3 LIVE: Bharat Coking Coal has secured ₹273.1 crore from anchor investors prior to its initial public offering, the company announced on Thursday. BCCL revealed that it has distributed 11,87,53,500 equity shares to these investors at a price of ₹23 per share.

Prominent investors involved in the anchor book include the Life Insurance Corporation of India, Societe Generale, Copthall Mauritius Investment Ltd, Citrine Fund, M7 Global Fund PCC-ASAS Global Opportunities Fund, Maybank Securities, and Rajasthan Global Securities Pvt Ltd.

Among the equity-focused mutual funds, shares were allocated to UTI Dividend Yield Fund along with other UTI schemes, Nippon Life India Trustee -- A/C Nippon India Small Cap Fund, and Bandhan Small Cap Fund.

Bharat Coking Coal IPO Day 3 LIVE: Tentatively, Bharat Coking Coal IPO basis of allotment of shares will be finalised on Wednesday, January 14, and the company will initiate refunds on Thursday, January 15, 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.

Bharat Coking Coal IPO Day 3 LIVE: Bharat Coking Coal IPO GMP today is ₹10.6. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Bharat Coking Coal is indicated at ₹33.6 apiece, which is 46.09% higher than the IPO price of ₹23.

Following the analysis of the last 11 sessions of grey market activities, the present GMP ( ₹10.6) indicates a trend towards the downside. The lowest GMP recorded is ₹9.25, whereas the highest stands at ₹16.25, as per expert opinions.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.