Bharat Coking Coal (BCCL) IPO entered its third and final day on Tuesday, continuing to attract strong investor interest. The Rs 1,071-crore issue is currently commanding a grey market premium (GMP) of Rs 11, indicating nearly 46% gains over the upper price band of Rs 23 ahead of its listing.The GMP reflects strong positive sentiment in the unofficial market. Based on this trend, the stock is estimated to list at around Rs 34 per share.
Bharat Coking Coal IPO subscription status
By the close of the second day of bidding, the Bharat Coking Coal IPO had received an overall subscription of 33.67 times, reflecting robust investor interest. Retail Individual Investors (RIIs) subscribed their quota 26.94 times against the 13.85 crore shares allotted to them, showing strong participation from small investors.Non-Institutional Investors (NIIs) witnessed exceptionally high demand, with subscriptions reaching 96.36 times for the 5.93 crore shares on offer, signalling strong confidence among high-net-worth individuals and corporate investors. Qualified Institutional Buyers (QIBs) recorded a subscription of about 1.33 times against their allocation of 7.91 crore shares, according to ET.
Bharat Coking Coal IPO: Key details
The IPO, entirely an offer for sale by Coal India, is scheduled to close today. The issue size is Rs 1,071 crore, with a price band of Rs 21–23 per share and a face value of Rs 10. The minimum application size is 600 shares and listing is proposed on both NSE and BSE.BCCL is India’s largest producer of coking coal and the only significant domestic supplier of prime coking coal, a key input for steel production.As of April 2024, the company’s estimated coking coal reserves stood at 7.91 billion tonnes, accounting for nearly 21.5% of India’s total coking coal resources. In FY25, it produced 58.5% of the nation’s domestic coking coal. The company operates 34 mines across the Jharia coalfields in Jharkhand and Raniganj coalfields in West Bengal.BCCL is a wholly owned subsidiary of Coal India, benefiting from its parent’s technical expertise, financial strength and operational scale. In FY25, the company reported revenue of Rs 14,401 crore and a consolidated profit of Rs 1,240 crore, remaining debt-free and cash-generative despite some margin fluctuations.
Should you subscribe?
According to Anand Rathi Research, BCCL is fairly valued at around 8.64x P/E based on FY25 earnings at the upper price band. Given its consistent performance and strong financials, the brokerage recommends subscribing to the IPO for potential listing gains.SBI Securities also suggests subscribing at the cut-off price, highlighting BCCL’s dominant position in domestic production, estimated reserves of 7.91 billion tonnes and EV/EBITDA of 6.4x based on post-issue capital.The IPO is managed by IDBI Capital Markets & Securities Limited and ICICI Securities Limited as book-running lead managers, with KFin Technologies Limited appointed as the registrar.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
