The Indian primary market has welcomed a new public offering from the state-owned energy sector. The initial public offering (IPO) of Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India Ltd, commenced its subscription period today, January 9, 2026. Investors have a window until January 13, 2026, to bid for shares in this company, which is a key player in the production of coking coal essential for the steel industry.
IPO Details and Key Dates
The company has set a price band for its equity shares at ₹21 to ₹23 per share. Through this Offer for Sale (OFS) route, the energy PSU aims to mobilise ₹1,071 crore. The issue is slated for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
For retail investors, the application process is lot-based. One lot comprises 600 shares of Bharat Coking Coal. The registrar for the issue is KFin Technologies, while the lead managers overseeing the process are IDBI Capital Markets Services and ICICI Securities.
The timeline for the IPO is clearly defined. The allotment of shares is most likely to be finalised on January 14, 2026, with the listing date expected to be January 16, 2026.
Shareholder Quota and Grey Market Sentiment
A notable feature of this IPO is the shareholder quota reserved for existing investors of its parent company. Individual and HUF investors who held Coal India shares as of January 1, 2026, are eligible to apply under this special category. The quota is accessible even to those holding a single share of Coal India, with a maximum application cap of ₹2 lakh under this segment.
Meanwhile, in the unofficial grey market, shares of Bharat Coking Coal are already trading at a premium, indicating strong investor interest. Market observers report a Grey Market Premium (GMP) of ₹11 per share. This suggests the grey market anticipates a listing price of around ₹34 (₹23 + ₹11), which would translate to a potential listing pop of approximately 48% for successful allottees.
Analyst Views and Financial Health
Analysts have largely given a thumbs up to the public issue, citing reasonable valuation and strong industry positioning. Rajan Shinde, Research Analyst at Mehta Equities, advised investors to subscribe, highlighting the attractive valuation of a high-quality, cash-generative PSU asset. He pointed to the long-term demand from India's expanding steel sector as a key growth driver.
Echoing a positive stance, Mahesh M Ojha, Vice President at Kantilal Chhaganlal Securities, assigned a 'buy' tag. He noted that BCCL trades at a significant discount to global peers (8.5–10.5x FY25 P/E vs. 14–20x) despite strong return metrics like a 21% Return on Net Worth (RoNW). Over 80% of its revenue comes from domestic steel producers, insulating it from volatile global export markets and tying its fortunes directly to India's infrastructure growth.
Financially, the company has shown a consistent increase in net worth over the past two years. However, its Profit After Tax (PAT) and EBITDA saw a dip in FY25 after rising in the previous year. As of March 31, 2025, key ratios included a price-to-book value of 1.63, a PAT margin of about 8.60%, and an EBITDA margin of 16.35%. The company's total borrowings stood at approximately ₹1,560 crore at the end of the second quarter of FY26.
