Bharat Coking Coal IPO Day 2: 8.09x Subscribed, GMP at ₹10.6

Bharat Coking Coal IPO Day 2: Due to strong demand from retail, non-institutional, and current shareholder investor categories, the first day of bidding for Bharat Coking Coal Limited’s IPO had a subscription rate of 8.09 times. The IPO GMP for Bharat Coking Coal is now ₹10.6.

Bharat Coking Coal IPO Subscription Details

The Bharat Coking Coal IPO subscription period will run from Friday, January 9 until Tuesday, January 13. The business obtained ₹273.1 crore from its anchor investors before the offer opened.

According to the offer papers, the issue is evaluated at around two times the price-to-book ratio and nine times the price-to-earnings ratio at the highest point of the price range. It is anticipated that this selling offer from Coal India would bring in ₹1,071 crore.

Bharat Coking Coal IPO Key Dates and Timeline

According to tentative plans, the Bharat Coking Coal IPO basis for share allocation will be finalized on Wednesday, January 14. The business will start reimbursements on Thursday, January 15, and the shares would be deposited to the allottees’ demat accounts the same day after the refund. On Friday, January 16, the share price of Bharat Coking Coal is probably going to be posted on the BSE and NSE.

The IPO GMP for Bharat Coking Coal is now ₹10.6. The expected listing price of Bharat Coking Coal is ₹33.6 per piece, 46.09% more than the IPO price of ₹23, taking into account the top end of the IPO pricing range and the existing premium on the grey market.

Bharat Coking Coal IPO GMP Trend

The current GMP (₹10.6) shows a downward trend based on the study of the last ten sessions of gray market activity. According to expert assessments, the lowest documented GMP is ₹9.25, while the highest is ₹16.25. The “grey market premium” shows that investors are willing to pay more than the issue price.

On day one, Bharat Coking Coal’s IPO subscription status was 8.09 times. Qualified Institutional Buyers (QIBs) earned 30% of the bids, while the retail part was subscribed 9.26 times and the NII portion was booked 16.39 times. According to BSE statistics, at 17:00 IST, the business got bids for 2,80,61,36,400 shares against 34,69,46,500 shares on sale.

Brokerage Views on Bharat Coking Coal IPO

Canara Bank Securities said, “We retain a bullish perspective on Bharat Coking Coal given its link with Coal India, a thriving steel sector, and strong fundamentals.” However, there are issues with seasonal fluctuations, as seen by the first half of this year, when substantial rainfall in the Dhanbad region caused the reported estimates to fall short. For investors with a “Medium to High” risk tolerance, the brokerage recommends “SUBSCRIBE” to the offering for long-term rewards.

Despite short-term delays in H1 FY26 due to excessive rains, Nirmal Bang pointed out that the company’s practically debt-free balance sheet has helped it retain consistent revenue streams and dramatically raise its EBITDA margin from 4% in FY23 to 13% in FY25. The firm suggests subscribing to the offer since prices at 5.6x FY25 EV/EBITDA still seem appealing.

According to Anand Rathi, Bharat Coking Coal, which has a sizable market share in the industry, is valued correctly at around 8.64 times the price-to-earnings ratio based on FY25 profits (at the top range). The present value seems to accurately reflect the company’s strong financial metrics and dependable performance history. In order to profit from any listing profits, the brokerage advises investors to subscribe to the IPO.

Bharat Coking Coal Company Overview

Coal India, which has a 100% share in Bharat Coking Coal, is the only company involved in the IPO. Coal India would get the ₹1,071 crore in cash obtained from the IPO at the maximum price of ₹23.

India’s top producer of coking coal is Bharat Coking Coal, a fully owned subsidiary of Coal India. The enterprise accounted for over 58.5% of the country’s coking coal output in the fiscal year 2025. With an estimated 7.91 billion tonnes of coking coal reserves, it is the only major local supply of high-grade coking coal, which is necessary for the manufacturing of steel.

Frequently asked questions

1. What is the Bharat Coking Coal IPO’s pricing range?

₹23 per share is the predetermined upper price for the IPO.

2. What does the Bharat Coking Coal IPO’s current GMP show?

The most recent GMP is ₹10.6, suggesting high listing gains and a potential listing around ₹33–34. GMP, however, is informal and subject to sudden modification.

3. Who should think about submitting an application for this IPO?

Investors seeking long-term exposure to the steel and coking coal industry or listing gains with a medium to high risk appetite could think about applying.

4. Is the initial public offering (IPO) of Bharat Coking Coal a new product?

All of this is a Coal India Offer for Sale (OFS). The problem will not generate any revenue for the firm.

5. What are the main risks connected to the IPO?

Important hazards include reliance on the steel industry, price volatility in coal demand, and seasonal interruptions brought on by rains.

Conclusion:

significant subscriptions to the Bharat Coking Coal IPO in the retail, NII, and shareholder categories indicate significant investor confidence. The firm has strong margins, a largely debt-free balance sheet, a leading position in the Indian coking coal industry, and appealing values when compared to competitors.

Brokerages are generally optimistic and advise a “Subscribe” grade for both listing gains and long-term investment despite short-term operational concerns brought on by weather-related interruptions.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before investing.