The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL) witnessed a blockbuster entry into the market, carrying its strong momentum into the second day of bidding on Monday, January 12. The offer, which opened for subscription on Friday, January 10, was met with overwhelming investor appetite, leading to a full subscription within minutes of its launch on the first day itself.
Overwhelming Investor Response and Subscription Details
The public issue was subscribed an impressive 8.09 times on the very first day of bidding, Friday, January 10. The subscription window for the Bharat Coking Coal IPO will remain open until January 13. Prior to the public opening, the company had already secured a commitment of ₹273.1 crore from anchor investors, setting a positive tone for the offering.
The price band for the BCCL IPO has been fixed at ₹21 to ₹23 per share. It is crucial for investors to note that this is entirely an Offer for Sale (OFS) by its promoter, Coal India Limited. This means the company, BCCL, will not receive any proceeds from the issue; the funds will go to the selling shareholder, Coal India.
Strong Grey Market Premium and Listing Prospects
The market sentiment around the Bharat Coking Coal IPO remains exceedingly positive, as reflected in its grey market premium (GMP). According to market data, the BCCL IPO GMP today stands at ₹10.6. This signals an anticipated listing price of approximately ₹33.6 per share, which would represent a staggering premium of over 46% to the upper end of the offer price band (₹23).
If the current trends hold, shares of Bharat Coking Coal are scheduled to make their trading debut on both the BSE and NSE later this week on January 16, offering early investors a potentially significant gain.
About Bharat Coking Coal Limited
Bharat Coking Coal Limited holds a pivotal position in India's industrial landscape. It is the country's largest producer of coking coal, a critical raw material for steel production. The company contributes a substantial 58.5% of the domestic coking coal output in FY25.
As a wholly-owned subsidiary of Coal India Limited, BCCL commands significant resources. The company boasts estimated coal reserves of nearly 7,910 million tonnes, ensuring its long-term operational viability and strategic importance to the nation's core sectors.
The successful IPO and the robust grey market premium underscore investor confidence in the company's market dominance and future prospects within the essential coal mining industry.
