Bharat Coking Coal IPO: Grey market premium signals strong 50% listing gains

Shares of Bharat Coking Coal, a subsidiary of India's largest mining company Coal India Ltd

., are commanding a grey market premium of around 50%, signalling strong listing expectations ahead of the IPO opening later this week.

While the GMP has eased marginally in recent sessions, it continues to point to healthy listing gains. That said, grey market premiums are only an indicator of demand in the unlisted market and can change quickly.

Bharat Coking Coal will be the first mainboard IPO of 2026. The company has fixed the price band for its ₹1,071 crore public issue at ₹21 to ₹23 per share.

The three-day issue will open for subscription on Friday, January 9, and close on Tuesday, January 13. Eligible employees will be offered a discount of ₹1 per share.

The IPO is entirely an Offer for Sale, with parent Coal India divesting 10% of its stake.

Retail investors can apply for one lot of 600 shares, requiring a minimum investment of ₹13,800, and in multiples of 600 shares thereafter. The issue allocation includes 35% for retail investors, 50% for Qualified Institutional Bidders, and 10% for Non Institutional Investors.

Shares worth ₹107 crore have been reserved for eligible Coal India shareholders. Investors who held Coal India shares on or before January 1, 2026, will be eligible to apply under the shareholder quota.

At the upper end of the price band, Bharat Coking Coal is expected to command a post issue market capitalisation of ₹10,711 crore.

Following the IPO, Coal India's stake in the company will decline to 90% from 100%, still comfortably above the minimum public shareholding requirement of 75%.

IDBI Capital and ICICI Securities are the book running lead managers to the issue.

Allotment of shares is scheduled for January 14, with the stock expected to debut on the exchanges on Friday, January 16.

The listing is part of Coal India's broader plan to take all its subsidiaries public by FY30, according to reports. Shares of Coal India ended 0.34% lower on Tuesday at ₹426.