Coal India subsidiary Bharat Coking Coal's IPO to open on Friday; price band fixed. Check GMP, other details

The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of Maharatna PSU Coal India, has announced the price band for its upcoming share sale at ₹21-23 per share.

The public offer, worth ₹1071 crore, will mark the first mainboard IPO of 2206. It will open for bidding this Friday, January 9, and close on Tuesday, January 13. Meanwhile, the anchor book will open a day before the IPO dates, on January 8.

Investors can apply for the BCCL IPO in lots of 600 shares and multiples thereof, requiring a minimum investment of ₹13,800 at the upper end of the price band.

BCCL IPO is entirely an offer for sale of 46.57 crore shares by the promoter selling shareholder, Coal India. This means all the proceeds from the IPO will be received by the company.

In the IPO, not more than 50% of the offer is reserved for qualified institutional buyers (QIBs), not less than 15% for non-institutional investors (NII) and not less than 35% for retail investors. The IPO also has employee and shareholder quotas

BCCL IPO GMP

Following the announcement of the price band, BCCL IPO started commanding a strong grey market premium (GMP). As per data from investorgain.com, BCCL IPO GMP today is ₹16.25, meaning that the PSU company's shares are trading ₹16.25 above the IPO price band.

The current GMP signals that BCCL IPO shares are commanding a whopping 70% premium in the grey market already.

Investors, however, must note that GMP is subject to sharp swings and should not be the sole factor influencing investment decisions. Investors should focus on a company's fundamentals and their own risk appetite to make that call.

About BCCL

The company itself is a Category I Mini Ratna. It 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.

According to the company's red herring prospectus, BCCL is the largest coking coal producer in India in Fiscal 2025 in terms of coking coal production, which accounted for 58.50% of the domestic coking coal production in Fiscal 2025.

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.

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

As of September 30, 2025, it operated a network of 34 operational mines, including 4 underground mines, 26 opencast mines, and 4 mixed mines.

IDBI Capital Markets & Securities Limited and ICICI Securities Limited are the book-running lead managers (BRLMs) to the IPO. Shares of BCCL are slated to list on BSE and NSE.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.