Bharat Coking Coal fixes IPO price band at Rs 21-Rs 23 per share for Rs 1,071 cr issue

Bharat Coking Coal Limited (BCCL), a wholly owned subsidiary of Coal India Limited, is set to launch the first mainboard initial public offering (IPO) of 2026, with a price band of Rs 21 to Rs 23 per equity share.The offer is a pure offer-for-sale (OFS) of up to 46.57 crore equity shares of face value Rs 10 each by Coal India Limited, valuing the IPO at Rs 1,071 crore. With this, BCCL’s equity shares will be listed on the main board platforms of both the BSE and NSE.Anchor investor bidding will open on Thursday, January 8, while the IPO will open for public subscription on Friday, January 9, and close on Tuesday, January 13. The company is offering a discount of Rs 1 per share to eligible employees participating under the employee reservation portion.Bharat Coking Coal IPO size and valuationThe total IPO size, based on the offer, is Rs 1,071 crore at the upper end of the price band, with the entire offering being an offer-for-sale by Coal India. There is no fresh issue component in the IPO.The price-to-earnings ratio at the upper price band of Rs 23 stands at 8.65 times, while at the lower band of Rs 21 it is 7.89 times, based on the diluted EPS for FY25. This compares with the average P/E ratio of 17.16 times for industry peers during the same period.Bharat Coking Coal IPO structureThe IPO includes a reservation of up to 2.32 crore equity shares for eligible employees and up to 4.66 crore shares for eligible shareholders of Coal India under the shareholder reservation portion. The remaining net offer portion will be divided among Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), in accordance with SEBI regulations.The QIB portion will not exceed 50% of the net offer, while the non-institutional and retail investor categories will have a minimum of 15% and 35% reservation respectively.Bharat Coking Coal IPO key datesAccording to the indicative timeline, the basis of allotment will be finalized on or about January 14. Refunds (if any) and unblocking of ASBA funds will begin from January 15, 2026. Allotment of shares to successful applicants will also take place on the same day. Trading of equity shares on the exchanges is expected to commence on or about January 16.About Bharat Coking CoalBCCL, incorporated in 1972, is India's largest producer of coking coal and operates primarily in the Jharia coalfields of Jharkhand and the Raniganj coalfields of West Bengal. The company was granted Mini Ratna status in 2014 and is focused on producing both raw and washed coal used across the steel, power, and cement industries.Financially, BCCL reported a net profit of Rs 1,240 crore for FY25, compared to Rs 1,564 crore in FY24. For the first half of FY26, PAT stood at Rs 124 crore, significantly lower than Rs 749 crore in the same period of the previous year. The revenue from operations in FY25 was Rs 13,803 crore, down from Rs 14,246 crore in FY24. In H1FY26, revenue was Rs 5,659 crore, compared to Rs 6,846 crore in H1FY25.The company has also been investing in mechanization and capacity enhancement and achieved a record coking coal production of 39.11 million tonnes in FY24. It recorded a CAGR of 5.80% in coking coal production between FY23 and FY25.Lead managers and registrar of Bharat Coking Coal IPOThe book running lead managers to the issue are IDBI Capital Markets & Securities and ICICI Securities. KFin Technologies has been appointed as the registrar to the issue.Also read: Looking for 2026 winners? Hindustan Copper, BSE among 10 stocks with up to 36% upside(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)