Bharat Coking Coal IPO 23x booked on strong demand; should you bid too?

Bharat Coking Coal IPO: The initial public offering (IPO) of Bharat Coking Coal, a subsidiary of Coal India, opened for public subscription on Friday, January 9, 2026, and received a solid response from investors. The mainline offering comprises an offer for sale (OFS) of 465.7 million shares worth up to ₹1,071.11 crore. 

 

On the first day of bidding, the issue received bids for 2.8 million equity shares against 346.9 million shares on offer, reflecting an 8.08 times subscription. The demand was led by Non-Institutional Investors (NIIs), who subscribed to their reserved quota by 16.39 times. The portion reserved for retail investors was booked 9.26 times, while the Qualified Institutional Buyers (QIBs) quota was booked only 30 per cent.  As of 01:20 PM on January 12, the second day of bidding, the issue has been booked 22.97 times, receiving bids for 7.97 billion shares. The NIIs quota was booked nearly 61 times and the retail investors portion was subscribed 20.5 times.

 

The subscription window for the issue will close on Tuesday, January 13, 2026. BCCL has set the price band for the issue in the range of ₹21 to ₹23 per share. 

 

Analysts are positive on Bharat Coking Coal, citing its market dominance, stable cash flows, and planned capacity expansions, with the IPO seen as attractive for investors seeking near-term listing gains and earnings visibility.  ALSO READ | NSE IPO nod likely by month-end, says Sebi chief Tuhin Kanta Pandey

Bharat Coking Coal IPO: Here's what the brokerages say

SBI Securities

Analysts at SBI Securities noted that BCCL is India’s largest producer of coking coal, contributing 58.5 per cent of the country’s total domestic output in FY25. The company holds estimated reserves of 7.91 billion tonnes and operates 34 mines, making it one of the largest coking coal reserve holders in India. Over FY23–FY25, the company reported a CAGR of 4.6 per cent in revenue, 88.1 per cent in Ebitda, and 36.6 per cent in PAT. 

 

Looking ahead, the company plans to expand its washery capacity from 13.65 MTPA to 20.65 MTPA through the construction of new washeries and the renovation of the existing Moonidih washery, which will double its operating capacity from 0.8 MTPA to 1.6 MTPA.

 

"At the upper price band of ₹23, the issue is valued at an EV/Ebitda multiple of 6.4x, respectively, based on post-issue capital. We recommend investors to 'Subscribe' to the issue at the cut-off price," the brokerage said in its note.

Anand Rathi

According to Anand Rathi, Bharat Coking Coal, with a strong market share in the industry valued at 8.64x price to earnings (P/E) on FY25 earnings (at the upper band), is valued fairly. Considering the company’s consistent track record & superior financial metrics, the valuation is fully priced in, the brokerage said. Anand Rathi recommends subscribing to the IPO for listing gains.   ALSO READ | Amagi Media Labs IPO opens Jan 13; sets price band at ₹343-361: Key details

129 Wealth Fund

Prasenjit Paul, equity research analyst and fund manager at 129 Wealth Fund, said the investors looking at this IPO are essentially evaluating valuation support and earnings visibility rather than aggressive growth. He added that, despite the cyclical nature of the coal sector, the risks are well understood and largely priced in, making the issue suitable for investors seeking near-term listing performance or stability-driven exposure, rather than those looking for long-term, high-growth opportunities.  Disclaimer: The views or investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.