Bharat Coking Coal IPO Day 2: The first day of bidding for Bharat Coking Coal Limited’s initial public offering saw a subscription rate of 8.09 times, fueled by robust interest from retail, non-institutional, and existing shareholder investor segments. Bharat Coking Coal IPO GMP today is ₹10.6.
Bharat Coking Coal IPO subscription period for the issue began on Friday, January 9 and will end on Tuesday, January 13. Prior to the opening of the issue, the company secured ₹273.1 crore from its anchor investors.
At the highest point of the price range, the issue is assessed at approximately 9 times the price-to-earnings ratio and nearly 2 times the price-to-book ratio, according to the offer documents. This offer for sale from Coal India is expected to generate ₹1,071 crore.
Tentatively, Bharat Coking Coal IPO basis of allotment of shares will be finalised on Wednesday, January 14, and the company will initiate refunds on Thursday, January 15, while the shares will be credited to the demat account of allottees on the same day following refund. Bharat Coking Coal share price is likely to be listed on BSE and NSE on Friday, January 16.
Bharat Coking Coal IPO GMP
Bharat Coking Coal IPO GMP today is ₹10.6. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Bharat Coking Coal is indicated at ₹33.6 apiece, which is 46.09% higher than the IPO price of ₹23.
Following the analysis of the last 10 sessions of grey market activities, the present GMP ( ₹10.6) indicates a trend towards the downside. The lowest GMP recorded is ₹9.25, whereas the highest stands at ₹16.25, as per expert opinions.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Bharat Coking Coal IPO subscription status
Bharat Coking Coal IPO subscription status was 8.09 times on day 1. The retail portion is subscribed 9.26x, and NII portion has been booked 16.39 times, Qualified Institutional Buyers (QIBs) portion received 30% bids.
The company has received bids for 2,80,61,36,400 shares against 34,69,46,500 shares on offer, at 17:00 IST, according to data on BSE.
Bharat Coking Coal IPO review
Canara Bank Securities indicated that, given its association with Coal India, a flourishing steel industry, and robust fundamentals, we maintain an optimistic outlook on Bharat Coking Coal. Nonetheless, there are concerns regarding seasonal variations, as demonstrated in the first half of this year, where the reported figures fell short due to significant rainfall in the Dhanbad area. The brokerage advises to “SUBSCRIBE” to the offering for long-term profits for investors with a “Medium to High” risk tolerance.
Nirmal Bang noted that although there were short-term disruptions in H1 FY26 caused by heavy rainfall, the company has maintained stable revenue streams and significantly increased its EBITDA margin from 4% in FY23 to 13% in FY25, bolstered by a nearly debt-free balance sheet. With valuations at 5.6x FY25 EV/EBITDA still appearing attractive, the brokerage advises to Subscribe to the issue.
Anand Rathi mentioned that Bharat Coking Coal, which holds a significant market share in the sector, is priced at approximately 8.64 times the price-to-earnings ratio based on FY25 earnings (at the upper limit) and is thus appropriately valued. Given the company’s reliable performance history and excellent financial indicators, the current valuation appears to be fully reflected. Therefore, the brokerage suggests that investors should subscribe to the IPO to benefit from potential listing gains.
Bharat Coking Coal IPO details
The Bharat Coking Coal IPO consists solely of an offer for sale by Coal India, which possesses a complete 100% stake in Bharat Coking Coal. The funds raised from the IPO, totaling ₹1,071 crore at the maximum price of ₹23, will be directed to Coal India.
Bharat Coking Coal, a wholly owned subsidiary of Coal India, is the leading producer of coking coal in India. In the fiscal year 2025, the company represented approximately 58.5% of the nation’s coking coal production. It possesses an estimated 7.91 billion tonnes of coking coal reserves, positioning it as the sole significant domestic source of high-grade coking coal, essential for steel production.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
