Bharat Coking Coal IPO see bumper demand, subscribed over 8x on first; GMP signals 45% listing gains

Bharat Coking Coal IPO: The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL) witnessed a solid response from investors on the first day of bidding as it sailed through within minutes of opening today, January 9.

At the end Day 1, BCCL IPO was subscribed over 8 times. Investors have the scope till January 13 to apply for the PSU IPO. BCCL also marks the first mainboard public offering of 2026 after a record-breaking primary market activity last year.

In 2025, companies raised the highest-ever funds of nearly ₹1.76 lakh crore through IPOs.

BCCL IPO Subscription

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.

Bharat Coking Coal IPO GMP

The public offer by Coal India subsidiary is also witnessing a strong grey market premium (GMP). BCCL IPO GMP today is ₹10.25. This means that BCCL shares are trading ₹10.25 above the offer price of ₹23.

At the prevailing Bharat Coking Coal IPO GMP, the listing price could be ₹33.25 — a premium of 44.57%. Investors, however, must note that GMP is subject to swift changes and should not be the sole factor driving investment decisions.

Bharat Coking Coal IPO Details

Bharat Coking Coal is looking to raise ₹1,071 crore via the IPO, which is priced at ₹21-23 apiece.

According to the red herring prospectus (RHP), BCCL IPO is entirely an offer for sale (OFS) of 46.57 crore equity shares by parent Coal India. This means no proceeds will be received by the company and will go to its parent, Coal India.

Ahead of the issue opening, BCCL had raised over ₹273 crore from anchor investors.

Incorporated in 1972, Bharat Coking Coal is engaged in mining and supplying coking coal, with operations concentrated in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal.

Commenting on the IPO, Anand Rathi said that 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," it added.

On the other hand, Swastika Investmart finds BCCL IPO PO suitable for long-term dividend seekers as well as investors looking for listing gains amid strong fundamentals, attractive valuations and industry position.

Shares of Bharat Coking Coal are slated to list on BSE and NSE on January 16.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.