Bharat Coking Coal IPO fetch record applications; check odds of allotment & latest GMP

Bharat Coking Coal IPO, which saw a historic response from investors during the bidding process, has now left investors wondering what are the odds of getting the allotment of shares after a record-breaking bidding for the issue. Interestingly, retail bidders stand the best chance of allotment for this issue, along with eligible shareholders of Coal India Ltd, bidding for the issue.

The IPO of Bharat Coking Coal fetched more than 90.30 lakh applications. Net of the Rs 273.13 crore anchor book, the IPO of Bharat Coking Coal fetched bids 50,95,55,58,000 equity shares worth Rs 1,17,977.83 crore for its Rs 797.87 crore net offering as the issue was overall booked a bumper 146.87 times.

The quota for qualified institutional bidders (QIBs) was booked 310.81 times, fetching bids worth Rs 56,595 crore. The allocation for non-institutional investors (NIIs) was booked 258.16 times, attracting bids for Rs 35,256.38 crore for their allocation. Retail portion was booked 49.33 times, while the shareholders' category was booked 87.29 times, attracting bids for Rs 9,350 crore. The employees' portion was booked 5.72 times.

Here is the tentative odds allotment matrix in Bharat Coking Coal IPO for the investors:

• Big HNI category: 1 investor out of 54 investors will get 9,000 shares (Probability: 1.85 per cent)
• Small HNI category: 1 investor out of 200 investors will get 9,000 shares (Probability: 0.5 per cent)
• Retail category: 1 investor out of 49 investors will get 600 shares (Probability: 2.05 per cent)
• Shareholder category: Investors applying for 600, one out of 87 will get 600 shares (Probability: 1.15 per cent); from investors applying for 1,200 shares, 2 out of 87 will get 600 shares (Probability: 2.3 per cent); from investors applying for 1,800 shares, 3 out of 87 investors will get 600 shares (Probability: 3.45 per cent); likewise from investors applying for 8,400 shares, 14 out of 87 investors will get 600 shares (Probability: 16.09 per cent).

One should note that only valid applications with an IPO mandate shall be considered for the allotment. The applications may get rejected if there are some lags.

Trivesh D, COO at Tradejini said tha most common reasons for cancellation of IPO application are mismatch between the PAN and demat account details, payments made from a bank account that does not belong to the applicant, incorrect bank account linkage under ASBA, or insufficient funds at the time of allotment or uses a non-UPI compliant account for retail bids.

"Applications can also be rejected if an investor applies in multiple categories using the same PAN, as they feel it will increase because they assume the chances of allotments will be high, but it doesn’t. We feel most rejections today are not market-related but process-driven, which is why double checking basic details before applying has become a necessity," he said.

The IPO of Bharat Coking Coal was open for bidding between January 09 and January 13. The Dhanbad-based coal player offered its shares in the fixed price band of Rs 21-23 per share with a lot size of 600 shares. The company raised Rs 1,071 crore via its primary offering, which was entirely an offer-for-sale (OFS) of up to 46,57,00,000 equity shares.

Grey market premium (GMP) of Bharat Coking Coal has inched higher following a strong response from investors, signaling a strong listing at the bourses. Last heard, the company was commanding a premium of Rs 13.25-13.5 in the unofficial market, indicating a listing pop of 57-60 per cent for the investors.

IDBI Capital Markets Services and ICICI Securities are the book running lead managers of Bharat Coking Coal IPO and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE. The listing date has been postponed to Monday, January 19, from Friday, January 16 earlier considering the market holiday on Thursday, January 15.