Bharat Coking Coal IPO Day 3 sees massive demand with 38x subscription. GMP at ₹10.6–₹11 signals 46–48% listing gains. Check latest updates, subscription details, and expert views.
New Delhi: The Bharat Coking Coal Limited (BCCL) IPO has received massive investor interest on its third and final day. As of 10:30 AM today, the issue has been subscribed 38.10 times. Strong demand from non-institutional investors (NIIs) and retail investors has pushed total bids to around ₹30,400 crore.
The grey market premium (GMP) is holding steady between ₹10.6 and ₹11, which suggests possible listing gains of 46% to 48% over the upper price band of ₹23. BCCL is India’s largest producer of coking coal and is a subsidiary of Coal India Limited (CIL). The IPO fits well with the government’s goal of making India self-reliant in coal production, and most brokerages have recommended the issue for short-term listing gains.
IPO Structure and Important Dates
The BCCL IPO is a mainboard issue worth ₹1,071.11 crore. It consists entirely of an Offer for Sale (OFS) of 46.57 crore shares by the promoter, Coal India Limited. No new shares are being issued, so the company will not receive any fresh funds. The money raised will go to the government as part of its PSU disinvestment plan.
▪︎ Price Band: ₹21 to ₹23 per share
▪︎ Lot Size: 600 shares
▪︎ Minimum Investment: ₹12,600–₹13,800
The IPO aims to improve share liquidity, expand the shareholder base, and help Coal India recycle capital for future expansion and employee retention. Around 2.33 crore shares are reserved for employees.
Company Overview and Operations
BCCL is a fully owned subsidiary of Coal India Limited and produces 58.5% of India’s total coking coal as of FY25. The company operates 34 coal mines in Jharkhand’s Jharia coalfield and West Bengal’s Raniganj coalfield. It has proven reserves of 7.91 billion tonnes.
BCCL currently has coal washery capacity of 13.65 million tonnes per year, which it plans to increase to 20.65 million tonnes per year.
To reduce India’s dependence on imported coking coal, BCCL is also expanding into Coal Bed Methane (CBM) projects and solar power, with full technical and financial support from Coal India. Its strengths include large coal reserves, control over key coalfields, large-scale production, and strict regulations that make new competition difficult.
Financial Performance
Financial highlights from FY23 to FY25:
▪︎ Revenue: Increased from ₹12,624 crore to ₹13,803 crore (4.6% CAGR)
▪︎ EBITDA: Rose sharply from ₹497 crore (3.9% margin) to ₹1,757 crore (12.7% margin), growing at an 88.1% CAGR
▪︎ Profit After Tax (PAT): Grew at a CAGR of 36.6% to ₹1,240 crore (9.0% margin)
▪︎ Balance Sheet: Debt-free company
¤ Equity: ₹6,463 crore
¤ Total assets: ₹17,283 crore
¤ ROE/ROCE in FY25: 19.2% / 30.1%
¤ Peak ROE/ROCE in FY24: 29.4% / 47.2%
In 1HFY26, revenue stood at ₹5,659 crore, but EBITDA margin turned negative at -3.4% due to seasonal issues and higher costs.
At the upper price band of ₹23, the IPO values BCCL at:
▪︎ EV/EBITDA: 5.5x–6.4x
▪︎ P/E: around 8.64x (based on FY25 earnings)
BCCL has no listed Indian peers. International comparisons include companies like Warrior Met Coal and Alpha Metallurgical Resources.
Key risks include high ash content in coal, dependence on contractors, and operational challenges. These risks are partly reduced by strong government support for domestic coal production.
Subscription Status (As of 10:30 AM, Day 3)
The IPO has received bids for 13,21,74,83,400 shares, against 34,69,46,500 shares available.
Category-wise subscription:
- QIBs: 1.47 times (excluding anchor investors)
- NIIs: 114.51 times
- Big NIIs: 115.58 times
- Small NIIs: 113.97 times
- Retail Investors: 28.90 times
- Employees: 2.77 times
- Shareholders: 47.96 times Earlier days:
- Day 2 (Jan 12): 33.60 times subscribed
- Day 1 (Jan 9): 7.95 times subscribed, fully booked within minutes
More than 52 lakh applications have been received so far. The 10% reservation for retail investors has attracted strong participation.
Grey Market Premium (GMP) Trend
As of January 13, the GMP is ₹10.6–₹11, indicating a possible listing price of ₹33.6–₹34 per share. This reflects expected gains of 46%–48%.
During the IPO period, GMP stayed in the 46%–50% range, though it has cooled slightly from pre-IPO levels of 65%–70%. Overall, the trend suggests listing gains of 43%–50%, in line with investor optimism around PSU energy stocks.
Expert Opinions and Brokerage Views
Most brokerages have advised investors to subscribe:
- Anand Rathi Research: Subscribe for listing gains; highlights strong market position and fair valuation, though limited long-term upside
- SBI Securities: Recommends subscribing at cut-off price; notes strong EBITDA and PAT growth and washery expansion plans
- Deven Choksey Research: Finds valuation attractive at 5.5x EV/EBITDA; recommends subscribing despite coal quality challenges
- Mehta Equities (Rajan Shinde): Calls it reasonably valued; sees it as a rare cash-generating PSU opportunity
- Prasenjit Paul (129 Wealth Fund): Suitable for stable returns and short-term gains due to strong cash flows
Overall view: Subscribe for short-term listing gains. Long-term growth may be moderate due to the cyclical nature of the coal industry.
Investor sentiment remains very positive. Social media platforms are buzzing about the 38x subscription and 46% GMP, pointing to a strong market debut. As the first coal PSU IPO in many years, BCCL has gained strong attention in 2026’s IPO market.