Bharat Coking Coal shares slip 11% from bumper listing level; here's what analysts advise

Shares of Bharat Coking Coal Ltd (BCCL) slipped over 11 per cent in Monday’s trade from their bumper listing levels amid profit-taking after a strong market debut.

The stock listed at Rs 45.21 on the exchanges, marking a stellar premium of 96.57 per cent over its initial public offering (IPO) price of Rs 23. However, as the trading session progressed, the counter came under selling pressure and fell 11.15 per cent from its listing price to touch a low of Rs 40.17 in its maiden trade.

Market experts attributed the decline to profit-booking after the sharp listing gains. Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said Bharat Coking Coal made a stellar debut, but advised investors with a short- to medium-term perspective to consider booking partial profits. He noted that several stocks that have delivered bumper listings in recent times have seen prices drift lower once the initial euphoria fades. Bathini added that investors looking for fresh exposure should wait for price corrections and approach the stock with a medium- to long-term investment horizon.

Ravi Singh, Chief Research Officer at Mastertrust, also highlighted the strong debut, pointing to robust trading volumes in early minutes as a sign of broad-based investor interest. According to Singh, the sharp listing premium reflects confidence in the company's strategic role in the coking coal segment and its close linkage with the domestic steel industry. However, he cautioned that some degree of profit-taking is natural after such a strong opening, adding that medium-term performance will depend on factors such as coal demand, price realisations and overall sentiment towards PSU stocks.

The IPO of Coal India Ltd's subsidiary was open for subscription between January 9 and January 13 in a price band of Rs 21–23 per share, with a lot size of 600 shares. The issue raised Rs 1,071 crore and was entirely an offer-for-sale (OFS) of 46.57 crore equity shares.

The initial share sale was subscribed 146.87 times, garnering bids worth nearly Rs 1.17 lakh crore from over 90.31 lakh applications. Incorporated in 1972, Dhanbad-based BCCL is engaged in the production of coking coal, non-coking coal and washed coal.