In FY25, the company accounted for approximately 58.5% of the country’s domestic coking coal production, making it the largest producer of the key steel-making raw material in India, according to CRISIL. 
In FY25, the company accounted for approximately 58.5% of the country’s domestic coking coal production, making it the largest producer of the key steel-making raw material in India, according to CRISIL. A strong grey market premium is setting the tone for the first mainboard IPO of 2026. Shares of Bharat Coking Coal Ltd (BCCL), a wholly owned subsidiary of Coal India Limited, are commanding a premium of around ₹16.5 in the unofficial market, signalling expectations of a solid stock market debut ahead of the issue’s launch this week.
The ₹1,071-crore initial public offering will open for subscription on January 9 and close on January 13, with anchor investor bidding scheduled for January 8. The issue marks the first public offering of the new calendar year and comes amid sustained investor interest in public sector undertakings (PSUs).
Pricing, valuation & issue structure
BCCL has fixed a price band of ₹21 to ₹23 per share. At the upper end of the band, the company is valued at over ₹10,700 crore. The IPO is a book-built issue and is entirely an Offer-for-Sale (OFS), with Coal India Limited offloading up to 46.57 crore equity shares. As a result, the company will not receive any proceeds from the issue.
The minimum application size is 600 shares per lot, translating into an investment of ₹13,800 per lot at the cut-off price. The basis of allotment is expected to be finalised on January 14, while the shares are slated to list on the BSE and NSE on January 15.
IDBI Capital Markets & Securities Limited and ICICI Securities Limited are the book-running lead managers for the issue.
Grey market premium points to strong listing gains
According to grey market trackers, Bharat Coking Coal’s shares are commanding a premium of up to 70% in the unofficial market. InvestorGain has pegged the GMP at around ₹16 per share, pointing to a potential listing gain of nearly 69.6%, while IPO Watch has also reported grey market premiums hovering around the 70% mark.
As of January 5, the Bharat Coking Coal IPO was trading at a grey market premium of about ₹16.5 per share, according to market trackers. Based on the upper issue price of ₹23, this suggests an estimated listing price of around ₹39.5, implying a potential listing gain of nearly 72%.
Market participants, however, note that grey market trends are unofficial and can change rapidly depending on broader market conditions.
India’s largest coking coal producer
Bharat Coking Coal plays a critical role in India’s coal and steel ecosystem. In FY25, the company accounted for approximately 58.5% of the country’s domestic coking coal production, making it the largest producer of the key steel-making raw material in India, according to CRISIL.
In addition to coking coal, BCCL produces non-coking coal and beneficiated (washed) coal, supplying the steel, power and industrial sectors.
A mini Ratna PSU, Bharat Coking Coal operates 32 mines, including 25 opencast, three underground and four mixed mines. Its operations are concentrated in the Jharia coalfield of Jharkhand and the Raniganj coalfield of West Bengal.
Despite heavy monsoon conditions, the company recorded its highest-ever coal production of 40.50 million tonnes in FY25. Total coal reserves are estimated at around 7,910 million tonnes, providing long-term visibility on resource availability.
Coking coal contributes about 74-77% of the company’s total revenue, with the balance coming from washed coal and non-coking coal used in the power and industrial sectors.
Financial performance
On the financial front, Bharat Coking Coal reported revenue of ₹13,803 crore in FY25, compared with ₹14,246 crore in FY24. Profit after tax declined 21% year-on-year to ₹1,240 crore.
The EBITDA margin stood at 16.36%, while the PAT margin was 8.61%. In the first half of FY26, revenue fell to ₹5,659 crore from ₹6,846 crore in the year-ago period, reflecting some pressure on topline growth.
As the first IPO of 2026, Bharat Coking Coal’s listing will be closely tracked for cues on investor appetite for PSU offerings and resource-sector stocks. While its dominant position in coking coal production and long reserve life remain key positives, investors are also likely to factor in earnings trends and the fact that the issue is a pure Offer-for-Sale.
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