Bharat Coking Coal (BCCL) IPO sees massive demand on Day 2, subscribed 16.48x with grey market premium signaling 46% listing gains. Check price band, key details, expert reviews, and subscription status for this PSU IPO.
New Delhi: The Bharat Coking Coal Limited (BCCL) IPO is seeing huge demand on its second day. Moreover, as of now, the issue is subscribed over 16.48 times, driven mainly by participation from non-institutional investors (NIIs) and additionally by retail buyers.
BCCL is India’s largest coking coal producer and a wholly owned subsidiary of Coal India Limited (CIL). The IPO is generating excitement, with the grey market premium (GMP) signaling potential listing gains of up to 46%. Brokerages are largely recommending subscription, highlighting BCCL’s role in reducing coal imports and its attractive valuation.
IPO Details
• Opening & Closing Dates: January 9 – January 13, 2026
• Offer Size: ₹1,071 crore for 46.57 crore equity shares
• Price Band: ₹21 to ₹23 per share
• Type: 100% Offer for Sale (OFS) by Coal India Ltd.
• Minimum Lot: 600 shares (₹13,800 at upper band)
• Anchor Investors: Raised ₹273.1 crore on January 8
• Share Allotment & Listing: Allotment Jan 14, crediting Jan 15, listing on BSE/NSE tentatively Jan 16
• Registrar: Kfin Technologies Ltd.
No fresh capital is being raised; all proceeds go to the government under its PSU divestment strategy.
Company Overview
BCCL operates 34 mines across Jharia (Jharkhand) and Raniganj (West Bengal) coalfields. It holds 7.91 billion tonnes of coal reserves and produced 58.5% of India’s coking coal in FY25. Its washery capacity is 13.65 MTPA, with plans to expand to 20.65 MTPA.
The company is diversifying into Coal Bed Methane (CBM) projects and solar energy, backed by CIL’s technical and financial support. Its strengths include unmatched reserves, geographic monopoly, large production scale, and regulatory advantages.
Financial Performance
• Revenue: ₹12,624 crore → ₹13,803 crore (FY23-FY25), CAGR 4.6%
• EBITDA: ₹497 crore → ₹1,757 crore (margin 12.7%), CAGR 88.1%
• PAT: ₹1,240 crore, CAGR 36.6% (margin 9%)
• Balance Sheet: Zero debt, equity ₹6,463 crore, total assets ₹17,283 crore
• ROE/ROCE: 19.2% / 30.1% (FY25)
In 1HFY26, revenue was ₹5,659 crore; however, EBITDA turned negative at -3.4% because of seasonal factors and additionally due to higher costs.
At the upper price band of ₹23, the IPO is valued at EV/EBITDA 5.5x-6.4x and P/E ~8.64x on FY25 earnings. There are no direct listed peers in India; international comparables include Warrior Met Coal, Inc. and Alpha Metallurgical Resources, Inc. Risks include high ash content in coal and reliance on contractors, balanced by government initiatives for coal self-sufficiency.
Subscription Status (Day 2)
As of January 12, 2026:
• Qualified Institutional Buyers (QIBs): 0.37x
• Non-Institutional Investors (NIIs): 40.61x
• Retail Investors (RIIs): 16.15x
• Employee Reserved: 1.47x
• Shareholder Portion: 21.62x
The GMP is stable at ₹10.6, which suggests a listing price of ₹33.6 per share, therefore implying gains of 43-46%. Meanwhile, GMP trends have remained at 43-50%, although they are slightly down from pre-IPO highs of 65%.
Expert Opinions
• Anand Rathi Research: “Subscribe” rating; highlights strong position, reserves, and fair P/E.
• SBI Securities: Recommends subscription at cut-off; cites revenue, EBITDA, PAT growth, and washery expansions.
• Deven Choksey Research: Attractive valuation at 5.5x EV/EBITDA; backed by reserves, CIL, and rising demand.
• Mehta Equities (Rajan Shinde): Reasonable valuation; notes 100% OFS but highlights cash-generating PSU opportunity.
• Prasenjit Paul (129 Wealth Fund): Stable cash flows; suitable for near-term listing gains or portfolio stability.
Market Sentiment
Investors remain bullish, noting strong GMP and high subscription rates. BCCL is positioned for a strong 2026 debut and aligns with India’s coal self-sufficiency goals. Experts expect listing gains of 15-50%, and investors are advised to apply via ASBA, keeping in mind the 10% retail allocation.