Bharat Coking Coal IPO gets thumbs up from brokerages; GMP buzz holds firm

Brokerages remain upbeat on the initial public offering (IPO) of Bharat Coking Coal (BCCL), a wholly owned subsidiary of Coal India, which opens for public subscription on Friday, January 9, 2025.

 

The company plans to raise ₹1,071.11 crore through an entirely offer-for-sale (OFS) of up to 465.60 million equity shares by the state-owned parent.

 

Notably, India’s largest producer of coking coal, BCCL, accounted for 58.5 per cent of domestic coking coal production in FY25. The company has estimated reserves of 7.91 billion tonnes and operates 34 mines, placing it among the country’s largest holders of coking coal reserves.

 

Brokerages bullish on Bharat Coking Coal

Against this backdrop, brokerages including SBI Securities and Canara Bank Securities have recommended that investors subscribe to the issue.

 

SBI Securities, in its note, highlighted that BCCL recorded a revenue, Ebitda, and PAT CAGR of 4.6 per cent, 88.1 per cent, and 36.6 per cent, respectively, over FY23–FY25.

 

The brokerage pointed out that the company is expanding its washery capacity from 13.65 million tonnes per annum (MTPA) to 20.65 MTPA through new washeries and the renovation of the Moonidih washery, where capacity is expected to double from 0.8 MTPA to 1.6 MTPA.  ALSO READ | Gabion Technologies IPO ends today; subscription surpasses 300x, GMP at 37 

“At the upper price band of ₹23, the issue is valued at an EV/Ebitda multiple of 6.4x based on post-issue capital. We recommend that investors subscribe to the issue at the cut-off price,” SBI Securities said.

 

Canara Bank Securities, meanwhile, underscored BCCL’s strong fundamentals and strategic importance to the steel sector. It noted that only 6 per cent of coal used in steelmaking is currently blended with imported coal due to low vitrinite content, a share that is expected to gradually rise to 25 per cent. The brokerage also highlighted the company’s plans to expand washery capacity by 7 MTPA.

 

“With the parentage of Coal India, a thriving steel sector, and strong fundamentals, we remain positive on Bharat Coking Coal. We recommend subscribing to the issue for long-term gains for investors with a medium to high-risk appetite,” Canara Bank Securities said.

Grey market sentiment remains favourable

Early trends in the grey market point to favourable sentiments for the issue. According to sources tracking unofficial market activity, BCCL’s unlisted shares were trading at around ₹34.75 apiece, implying a grey market premium (GMP) of ₹11.75 per share, or about 51.09 per cent over the upper end of the price band.

Bharat Coking Coal IPO details

The ₹1,071.11-crore IPO comprises an OFS of 465.7 million equity shares, with no fresh issue component.

 

The company has set the price band at ₹21–₹23 per share, with a lot size of 600 shares. At the upper price band, retail investors would need a minimum investment of ₹13,800 for one lot, while the maximum permissible investment of 14 lots (8,400 shares) would amount to ₹1,93,200.

 

ICICI Securities and IDBI Capital Markets & Securities are the book-running lead managers to the issue, while KFin Technologies is the registrar.  ALSO READ | Yajur Fibres IPO opens with 34% GMP; here's everything you need to know

IPO timeline

The three-day subscription window is scheduled to close on Tuesday, January 13, 2026. The basis of allotment is expected to be finalised on Wednesday, January 14, 2026, with shares likely to be credited to successful applicants’ demat accounts the same day. The stock is slated to list on the BSE and NSE on Friday, January 16, 2026.

Use of proceeds

As the IPO is entirely an offer-for-sale, Bharat Coking Coal will not receive any proceeds from the issue. All proceeds, after deducting offer-related expenses and applicable taxes, will accrue to the promoter, Coal India.

 

“Our Company will not receive any proceeds from the Offer, and all the Offer Proceeds will be received by the Promoter Selling Shareholder,” the company said in its red herring prospectus.  ================ 

(Disclaimer: The views and 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.)