Bharat Coking Coal IPO subscribed 22x on day 2 so far; check latest GMP, reviews & more

The initial public offering (IPO) of Bharat Coking Coal continued to see a strong demand from the investors on the second day of the bidding process, mostly the various categories of individual bidders The issue, which kicked off on Friday, January 09, was overall subscribed more than 8 times on day one.

Bharat Coking Coal is selling its shares in the price band of Rs 21-23 apiece. Investors can apply for a minimum of 600 shares and its multiples thereafter. It is looking to raise Rs 1,068.78 crore via IPO, which is entirely an offer-for-sale (OFS) of up to 46,57,00,000 equity shares by its promoter Coal India Ltd.

According to the data, the investors made bids for 7,70,27,57,400 equity shares, or 22.20 times, compared to the 34,69,46,500 equity shares offered for the subscription by 1.00 pm on Monday, January 12, 2026. The bidding for the issue shall conclude for bidding on Tuesday, January 12.

The allocation for non-institutional investors (NIIs) was subscribed 58.52 times, while the portion reserved for retail saw a subscription of 19.93 times. However, the quota set aside for eligible shareholders of Coal India and eligible employees were subscribed 29.85 times and 1.17 times, respectively. The portion for QIBs was booked 46 per cent as of the same time.

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.

Brokerage firms are mostly positive views on this IPO with some suggesting to subscribe to it thanks to its strong market share and scale, solid parentage, rising demand and debt free status. On the other hand, stretched valuations, geographical concentration and the full OFS nature of the issue are the key concerns.

BCCL has built a defensible position as India’s dominant coking coal producer with control over prime coking coal reserves and an asset-light model that enables scalable expansion. However, structural challenges persist as most production comprises low-grade coal with high ash content, limiting direct steel sector applicability and creating vulnerability to imported coal price movements, said Perumal Raja KJ, Associate Director of Research at FundsIndia.

"It is demanding a P/E of 8.64 times, based on the post-issue diluted EPS. When compared to its peers, it seems to be fully priced in.. The valuation discount to international peers reflects structural challenges mentioned above, while market leadership and government backing provide near-term stability, investors should view this as a tactical value play rather than a high growth company," he said with a 'subscribe' rating.

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. At the current valuations, Bharat Coking Coal commands a total market capitalization of Rs 10,711.10 crore.

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 has seen a sharp fall in its grey market premium (GMP) which has fallen from Rs 16 to Rs 10.6 apeice, signaling a 45 per cent upside.

BCCL valuations appear stretched, largely due to muted H1 earnings from lower volumes and realizations, compared with 5.6 times on FY25 EV/EBITDA. BCCL is India’s largest coking coal producer with a 58.5 per cent share and commands 41 per cent of domestic coal washing capacity. With India targeting 300 MT of steel capacity by FY30, demand for coking coal is set to rise, said Indsec Research.

"While domestic coal’s high ash content limits direct use, BCCL’s strong washery presence positions it well to benefit from higher washing and blending requirements. We assign a 'neutral' stance given the elevated TTM valuation, though increased blending of domestic coking coal at steel mills and transforming key mines and washeries remains a key upside trigger," it said.

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.

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 Monday, January 19 as the tentative date of listing.