Bharat Coking Coal IPO kicks off on Jan 9; GMP signals strong debut with 50% premium. Here are key details

Bharat Coking Coal Limited (BCCL), a wholly owned subsidiary of Coal India, is drawing strong investor interest ahead of its IPO opening for subscription on January 9. Strong market buzz around the issue is evident in the grey market, where the IPO is currently trading at a premium of around Rs 12 per share. Based on the upper end of the price band at Rs 23, this translates into a potential upside of nearly 50%, indicating an expected listing price of about Rs 34.50 per share.The Bharat Coking Coal IPO is a book-built issue valued at Rs 1,071.11 crore. The buzz around the issue involves an offer sale of 46.57 crore equity shares, which results in no fresh funds being raised by the company, and the proceeds will go to the selling shareholder, Coal India Limited. Meanwhile, the price band for the IPO has been fixed at Rs 21 to Rs 23 per share. Investors can apply in lots of 600 shares, putting the minimum investment for retail buyers at Rs 13,800 at the top end of the price band. The issue structure and pricing are designed to draw interest from both retail and institutional investors.Bharat Coking Coal IPO GMP today: As of January 7, the IPO’s grey market premium (GMP) is around Rs 12, implying a 50% premium over the upper end of the price band of Rs 23. The grey market is an unofficial platform where IPO shares are traded before they list on the exchanges. While the GMP reflects investor sentiment and can hint at potential listing gains, it is not a reliable predictor of actual performance.About Bharat Coking CoalEstablished in 1972, Bharat Coking Coal Limited is engaged in the mining of coking coal, non-coking coal, and washed coal. The company plays a crucial role in supplying coking coal to India’s steel and power sectors, and operates as a key subsidiary of Coal India Limited.As of March 31, 2025, BCCL operates 32 mining facilities, including 25 opencast mines, three underground mines, and four mixed mining operations. Its mining activities are spread across Jharia in Jharkhand and Raniganj in West Bengal, covering a total leasehold area of 288.31 square kilometers.The company holds substantial coking coal reserves of approximately 7,910 million tonnes as of April 1, 2024. In FY25, BCCL accounted for about 58.5% of India’s total domestic coking coal production. Coal production has steadily increased from 30.51 million tonnes in FY22 to 40.50 million tonnes in FY25, highlighting consistent operational growth. In FY24, the company produced 39.11 million tonnes of coking coal and 1.99 million tonnes of non-coking coal.The IPO is being managed by IDBI Capital Markets & Securities Limited and ICICI Securities Limited as the book-running lead managers, while KFin Technologies Limited has been appointed as the registrar to the issue.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)