Bharat Coking Coal IPO opens today: Should you subscribe to the first IPO of 2026

The initial public offering (IPO) of Bharat Coking Coal (BCCL) kicks-off for subscription on Friday, January 09. The Coal India Ltd-promoted coal player is offering its shares in the range of Rs 21-23 apiece. Investors can apply for a minimum of 600 equity shares and its multiples thereafter. The first IPO of 2025 shall close for bidding on Tuesday, January 13.

The Rs 1,068.78 crore issue of Bharat Coking Coal is entirely an offer-for-sale for up to 46,57,00,000 equity shares by the promoters of the company- the President of India, acting through the ministry of Coal, Government of India & Coal India. The company will not receive any proceeds from the issue.

Incorporated in 1972, Dhanbad-based Bharat Coking Coal (BCCL) is engaged in the production of coking coal, non-coking coal, and washed coal. The company is a wholly-owned subsidiary of Coal India. It operates a network of 34 operational mines, including four underground, 26 opencast, and four mixed mines as of September 30, 2025.

Ahead of its IPO, Bharat Coking Coal has raised Rs 273.13 crore from 15 anchor investors as it allocated 11.87 crore equity shares to anchor investors at Rs 23 apeice. Anchor book included names like Societe Generale, UTI Mutual Fund, Citrine Fund, Rajasthan Global Securities, M7 Global Fund, Copthall Mauritius Investment, Maybank Securities, Bandhan Mutual Fund and more.

Bharat Coking Coal has reserved 2,32,85,000 equity shares, or 5 per cent of the issue, for its eligible employees, who will get a discount of Re 1 per share during the bidding period. It has also reserved 4,65,70,000 equity shares, or 10 per cent of the issue, for the eligible shareholders of Coal India, who held its shares in their demat account as of January 02.

Bharat Coking Coal has reserved 50 per cent shares to qualified institutional bidders (QIBs), while it has reserved 15 per cent shares for non-institutional investors (NIIs) of the net offer. Retail investors will have 35 per cent of allocation in the IPO. It jas seen a sharp fall in its grey market premium (GMP) which has fell from Rs 16.25 to Rs 9.25 apeice, signaling a 40 per cent upside.

For the September 2025 quarter, Bharat Coking Coal reported a net profit of Rs 123.88 crore with a revenue of Rs 6,311.51 crore. It reported a net profit of Rs 1,240.18 crore with a revenue of Rs 14,401.63 crore for the financial year ended on March 31, 2025. At the current valuations, Bharat Coking Coal commands a total market capitalization of Rs 10,711.10 crore.

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 with Friday, January 16 as the tentative date of listing. Here's what a host brokerage firms say about the IPO of Bharat Coking Coal:  

SBI Securities

Rating: Subscribe

BCCL is India’s largest producer of Coking Coal and accounted for 58.5 per cent of the total domestic production in FY25. With estimated reserves of 7.91 billion tonnes and a network of 34 operational mines, it is amongst the largest Coking Coal reserve holders in the country. The issue is valued at EV/Ebitda multiple of 6.4 times based on post-issue capital, said SBI Securities.

"It has recorded Revenue, Ebitda and PAT CAGR of 4.6 per cent, 88.1 per cent and 36.6 per cent respectively over the FY23-FY25 period. It is expanding its Washery capacity to 20.65 MTPA from the current 13.65 MTPA through establishment of new washeries, along with the renovation of the existing Moonidih washery which shall double its operative capacity to 1.6 MTPA," it said with a 'subscribe' rating.  

Anand Rathi Share & Stock Brokers

Rating: Subscribe

Bharat Coking Coal had estimated reserves of about 7,910 million tonnes, making them one of the largest holders of coking coal reserves in India. They produce different grades of coking coal, non-coking coal, and washed coal, mainly for use in the steel and power industries, said Anand Rathi Share & Stock Brokers.

"Bharat Coking Coal, with a strong market share in the industry valued at 8.64 times P/E on FY25 earnings is valued fairly. Considering its consistent track record & superior financial metrics, the valuation is fully priced in. Hence, we recommend subscribing to the IPO for listing gains," it said.  

Arihant Capital Markets

Rating: Subscribe

BCCL is expected to maintain stable growth driven by sustained demand for coking coal from the steel sector and its strong reserve position. Ongoing mine reorganization, expansion of washery capacity and asset monetization are likely to support operational efficiency and volume stability, said Arihant Capital Markets.

"Backed by Coal India, the company is well placed to ensure consistent production and cash flows while continuing to strengthen its role in India’s domestic coking coal supply chain. The issue is valued at an EV/Ebitda of 4.7 times based on FY25 Ebitda. We are recommending a 'subscribe' rating for this issue," it said.  

Canara Bank Securities

Rating: Subscribe with caution

BCCL is the largest producer of coking coal in India, which has a key application in the steel sector. The coal produced in India is inferior because of the low vitrinite content and that is why only 6 per cent of Indian coal is blended with imported coal for the production of steel, this will increase gradually to 25 per cent. It has planned to increase the capacity of washeries by 7 MTPA, said Canara Bank Securities.

"With the parentage of Coal India, a thriving steel sector and strong fundamentals we remain positive on Bharat Coking Coal. However concern remains regarding seasonal fluctuations as seen in first half of this year, the reported numbers were not at par due to heavy rainfall in the Dhanbad region. We recommend 'subscribe' for the long term for investors with 'medium to high' risk," it said.  

Swastika Investmart

Rating: Subscribe for long-term

Bharat Coking Coal IPO appears attractively valued with a pre-IPO P/E of 8.64 times. Strong fundamentals are supported by EPS of Rs 2.66, ROCE 30 per cent and RoNW 21 per cent, indicating efficient operations, said Swastika Investmart in its IPO note

"BCCL is India's largest producer of coking coal, with nearly 58.5 per cent market share, which is a critical raw material for the steel industry. However, this is a 100 per cent offer-for-sale, so no fresh funds will be used for future growth. Overall, the IPO is suitable for long-term dividend seekers as well as investors looking for listing gains," it adds.  

Marwadi Financial Services

Rating: Subscribe

There are no Indian listed industry peers of comparable size and similar line of business of Bharat Coking Coal, therefore it is not possible to provide an industry comparison, said Marwadi Financial Services. "We assign “Subscribe” rating to this IPO as it is the largest coking coal producer in India with access to large reserves along with strong parentage and reasonable valuations."  

Sushil Finance

Rating: Subscribe for long-term

Bharat Coking Coal aims to reduce operational costs, increase productivity, and ensure the safety of the workforce. The rapidly growing economy and increasing demand for steel, is expected to push the demand for coking coal in upcoming years which presents an unexhaustive market to be catered by BCCL, said Sushil Finance.

The growth in coal demand will likely continue till Fiscal 2035. As a debt-free company, it has limited liabilities, providing substantial growth prospects. BCCL has strong parentage of Coal India and can achieve considerable growth in the near term. Looking at all the factors, risks, opportunities and valuation, investors can invest with a long term horizon.  

KC Securities

Rating: Subscribe

As a Coal India subsidiary, BCCL benefits from policy support, funding access, and long-term offtake arrangements, resulting in lower business risk and earnings stability compared to private/global peers. It is central to India’s push to reduce reliance on imported coking coal, enhancing its strategic importance, policy relevance, and long-term operational continuity, said KC Securities.

Incremental production comes at relatively low marginal cost, enabling meaningful EBITDA and cash flow upside as mine utilization improves. Healthy operating cash flows, low leverage, and PSU financial discipline reduce balance sheet risk and enhance dividend sustainability across cycles," it added with a 'subscribe' for listing gain and long term horizon rating.  

SMIFS

Rating: Subscribe

"We recommend subscribe to the issue as a long-term investment, with accelerating washery capacity expansion, a structural pivot to premium washed coal, and high scalability through MDO partnerships, BCCL is positioned to consistently capitalize on the import-substitution super-cycle while reinforcing its undisputed leadership in India's energy security framework," said SMIFS.  

BP Equities

Rating: Subscribe

BCCL's association with Coal India provides a strong foundation and access to extensive resources that are critical to its operations and long-term success, said BP Equities. "The company is trading at a P/E of 8.6 times based on its FY25 earnings. We recommend a 'subscribe' rating to the issue from a medium-to long-term perspective," it added.  

Ventura Securities

Rating: Subscribe

BCCL has demonstrated stable operating performance, supported by assured offtake from regulated customers and pricing mechanisms under Coal India. It continues to focus on operational efficiency, yield improvement through coal washing, and environmental remediation of legacy fire-affected mining areas, said Ventura Securities with a 'subscribe' rating.  

DR Choksey Finserv

Rating: Subscribe

BCCL benefits from vast reserves, strategic locations, and Coal India backing amid rising coking coal demand driven by steel production. Washery expansions to 20.65 MTPA and CBM projects promise enhanced yields and diversification, said DR Choskey Finserv.

"Operational challenges like high ash content and contractor reliance persist, but government coal self-sufficiency push supports growth. Revenue, Ebitda and PAT CAGR stood at 4.6 per cent, 88.1 per cent and 36.6 per cent over FY23-25, respectively. It issue is valued at EV/EBITDA of 5.5 times post-issue, appearing attractive given scale and prospects," it said with a 'subscribe' rating.