Bharat Coking Coal IPO Fully Subscribed in 30 Minutes, Sharp Surge in Grey Market

New Delhi: The initial public offering (IPO) of state-owned Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, opened for bidding on Friday and was fully subscribed within just 30 minutes.

The grey market premium (GMP) across several platforms stood at ₹11, indicating a potential listing price of around ₹34 and an estimated listing gain of about 47.83 percent as of 1:05 pm.

BCCL’s IPO, a ₹1,071 crore offer and the first mainboard public issue of 2026, will remain open for subscription until January 13. By Friday morning, the issue was subscribed 1.12 times, with bids received for 38.9 crore shares against the 34.69 crore shares on offer. The demand was largely driven by non-institutional investors (NIIs) and retail investors, who subscribed their portions 1.99 times and 1.5 times, respectively.

The IPO is a pure offer for sale (OFS) by Coal India, which currently holds 100 percent stake in BCCL. The price band has been fixed at ₹21–₹23 per share, and at the upper end, the company aims to raise ₹1,071 crore.

Ahead of the public issue, BCCL raised ₹273 crore from anchor investors, allotting 11,87,53,500 shares at ₹23 per share. As per the issue structure, 50 percent of the shares are reserved for Qualified Institutional Buyers (QIBs), 35 percent for non-institutional investors, and 15 percent for retail investors.

Analysts are largely recommending the IPO for listing gains, citing BCCL’s strong market position and an attractive valuation of around 8.64 times FY25 earnings at the upper price band. BCCL is India’s largest producer of coking coal, accounting for 58.50 percent of the country’s total domestic coking coal production in FY 2024–25.

Founded in 1972, Bharat Coking Coal Limited holds Mini Ratna status. The company does not have a directly comparable listed peer in India and is therefore benchmarked against global players such as Alpha Metallurgical Resources and Warrior Met Coal.