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What is the story about?
The initial public offering (IPO) of Bharat Coking Coal Ltd., a wholly-owned subsidiary of Coal India Ltd., was subscribed 24.37 times as of the second day of bidding on Friday. The issue, which opened for subscription on January 9, will remain open until January 13.
According to NSE data as of 1:50 pm, the IPO received bids for 845.64 crore shares against an offer size of 34.69 crore shares.
Retail investors subscribed 21.51 times their allotted quota, while non institutional investors booked 65 times their portion. The qualified institutional buyers segment was subscribed 56% so far.
ALSO READ | Bharat Coking Coal IPO: Should you subscribe to the ₹1,071 crore issue?
In the unofficial market, shares of Bharat Coking Coal were trading at a premium of around 47% to the IPO price. Grey market premiums, however, only reflect sentiment in the unlisted market and tend to be volatile.
The IPO is entirely an offer-for-sale, through which parent Coal India is divesting a 10% stake. The issue is priced in the range of ₹21 to ₹23 per share, with the company looking to raise ₹1,071 crore by offering 46.57 crore equity shares.
Retail investors can apply for a minimum lot size of 600 shares, which translates into an investment of ₹13,800 at the upper end of the price band, and in multiples thereafter.
The allocation has been set at 35% for retail investors, 50% for qualified institutional buyers, and 10% for non institutional investors.
Shares worth ₹107 crore have been reserved for eligible Coal India shareholders. Investors holding Coal India shares on or before January 1, 2026, are eligible to apply under the shareholder quota. Eligible employees will receive a discount of ₹1 per share.
At the upper end of the price band, Bharat Coking Coal is expected to have a post-issue market capitalisation of around ₹10,711 crore.
In an interaction with CNBC-TV18, Manoj Kumar Agarwal, Chairman and Managing Director (CMD) of Bharat Coking Coal said, "Presently we are doing 40.5 million tonne, and by 2030 we will go up to 56 million tonne."
The growth will come from a mix of expanding open-cast mines and reviving underground operations using modern technologies such as continuous miners.
The company is also monetising old, stopped underground mines and amalgamating smaller open-cast mines into larger, more efficient operations to overcome space constraints.
Following the listing, Coal India's stake will reduce to 90%, which remains well above the minimum public shareholding requirement.
Bharat Coking Coal is India's largest producer of coking coal, accounting for around 58.5% of domestic output in FY25. The company primarily operates in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.
IDBI Capital and ICICI Securities are the book running lead managers to the issue.
The basis of allotment is scheduled for January 14, with the stock expected to list on the exchanges on Friday, January 16.
According to NSE data as of 1:50 pm, the IPO received bids for 845.64 crore shares against an offer size of 34.69 crore shares.
Retail investors subscribed 21.51 times their allotted quota, while non institutional investors booked 65 times their portion. The qualified institutional buyers segment was subscribed 56% so far.
ALSO READ | Bharat Coking Coal IPO: Should you subscribe to the ₹1,071 crore issue?
In the unofficial market, shares of Bharat Coking Coal were trading at a premium of around 47% to the IPO price. Grey market premiums, however, only reflect sentiment in the unlisted market and tend to be volatile.
The IPO is entirely an offer-for-sale, through which parent Coal India is divesting a 10% stake. The issue is priced in the range of ₹21 to ₹23 per share, with the company looking to raise ₹1,071 crore by offering 46.57 crore equity shares.
Retail investors can apply for a minimum lot size of 600 shares, which translates into an investment of ₹13,800 at the upper end of the price band, and in multiples thereafter.
The allocation has been set at 35% for retail investors, 50% for qualified institutional buyers, and 10% for non institutional investors.
Shares worth ₹107 crore have been reserved for eligible Coal India shareholders. Investors holding Coal India shares on or before January 1, 2026, are eligible to apply under the shareholder quota. Eligible employees will receive a discount of ₹1 per share.
At the upper end of the price band, Bharat Coking Coal is expected to have a post-issue market capitalisation of around ₹10,711 crore.
In an interaction with CNBC-TV18, Manoj Kumar Agarwal, Chairman and Managing Director (CMD) of Bharat Coking Coal said, "Presently we are doing 40.5 million tonne, and by 2030 we will go up to 56 million tonne."
The growth will come from a mix of expanding open-cast mines and reviving underground operations using modern technologies such as continuous miners.
The company is also monetising old, stopped underground mines and amalgamating smaller open-cast mines into larger, more efficient operations to overcome space constraints.
Following the listing, Coal India's stake will reduce to 90%, which remains well above the minimum public shareholding requirement.
Bharat Coking Coal is India's largest producer of coking coal, accounting for around 58.5% of domestic output in FY25. The company primarily operates in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.
IDBI Capital and ICICI Securities are the book running lead managers to the issue.
The basis of allotment is scheduled for January 14, with the stock expected to list on the exchanges on Friday, January 16.
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