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What is the story about?
Shares of Bharat Coking Coal
Ltd., a subsidiary of Coal India Ltd., are scheduled to list on the stock exchanges on Monday, January 19, following exceptionally strong investor demand for its public offer, which was subscribed nearly 147 times on the final day of bidding.
Ahead of its debut, the stock is commanding a premium of nearly 60% in the grey market. However, grey market indications are speculative in nature and the actual listing price may differ materially from these levels.
Shivani Nyati, Head of Wealth at Swastika Investmart, said the robust subscription numbers and positive grey market signals point to a confident listing outlook, while cautioning investors to remain mindful of the sector's inherent cyclicality.
Prashanth Tapse of Mehta Equities said the IPO was reasonably priced, especially for a low ticket issue, offering an attractive risk reward profile.
He added that the company's dominant market position, coupled with structural demand tailwinds from sustained steel capacity expansion, supports a constructive medium to long term outlook.
In a best case scenario of over 50% listing gains, Tapse advised allotted investors to book profits on 50% of their holdings and retain the remainder to participate in long term value creation.
For non allotted investors, he recommended avoiding chasing the stock on listing day and instead waiting for post listing consolidation, given the likelihood of near term volatility in a cautious market environment.
The Bharat Coking Coal IPO emerged as the second most subscribed PSU issue on record, narrowly missing the top spot among state-run IPOs after bidding closed on January 13.
According to final NSE data, the ₹1,071 crore issue was subscribed 146.8 times overall, with bids for 5,093 crore shares against 34.69 crore shares on offer. Institutional investors led the demand, subscribing their portion 310.8 times, with bids for 2,460 crore shares versus 7.91 crore shares available.
Non institutional investors also showed strong interest, bidding for 1,532 crore shares against an allocation of 5.93 crore shares, translating into a subscription of 258 times.
Retail participation was robust as well, with the retail portion subscribed 49.2 times. Of the total issue, 35% or 13.85 crore shares were reserved for retail investors, who placed bids for 682.3 crore shares.
At the close of bidding, the IPO attracted bids worth ₹1.17 lakh crore, making it the third most bid for PSU IPO, behind Coal India, which received bids worth ₹2.31 lakh crore in 2010, and NHPC, which garnered ₹1.41 lakh crore in 2009.
The stock was originally slated to list on January 16, but the debut was postponed to January 19 after stock exchanges announced a trading holiday on January 15 due to municipal corporation elections in Maharashtra.
Traders and investors continue to price in a strong debut, indicating that the delay has done little to dent confidence around the offering.
Bharat Coking Coal is India's largest producer of coking coal, accounting for about 58.5% of domestic output in FY25. The company operates primarily in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.
The listing forms part of the government's divestment programme in Coal India subsidiaries. In its prospectus, the company said the IPO would help it realise the benefits of being a listed entity.
Ahead of its debut, the stock is commanding a premium of nearly 60% in the grey market. However, grey market indications are speculative in nature and the actual listing price may differ materially from these levels.
Shivani Nyati, Head of Wealth at Swastika Investmart, said the robust subscription numbers and positive grey market signals point to a confident listing outlook, while cautioning investors to remain mindful of the sector's inherent cyclicality.
Prashanth Tapse of Mehta Equities said the IPO was reasonably priced, especially for a low ticket issue, offering an attractive risk reward profile.
He added that the company's dominant market position, coupled with structural demand tailwinds from sustained steel capacity expansion, supports a constructive medium to long term outlook.
In a best case scenario of over 50% listing gains, Tapse advised allotted investors to book profits on 50% of their holdings and retain the remainder to participate in long term value creation.
For non allotted investors, he recommended avoiding chasing the stock on listing day and instead waiting for post listing consolidation, given the likelihood of near term volatility in a cautious market environment.
The Bharat Coking Coal IPO emerged as the second most subscribed PSU issue on record, narrowly missing the top spot among state-run IPOs after bidding closed on January 13.
According to final NSE data, the ₹1,071 crore issue was subscribed 146.8 times overall, with bids for 5,093 crore shares against 34.69 crore shares on offer. Institutional investors led the demand, subscribing their portion 310.8 times, with bids for 2,460 crore shares versus 7.91 crore shares available.
Non institutional investors also showed strong interest, bidding for 1,532 crore shares against an allocation of 5.93 crore shares, translating into a subscription of 258 times.
Retail participation was robust as well, with the retail portion subscribed 49.2 times. Of the total issue, 35% or 13.85 crore shares were reserved for retail investors, who placed bids for 682.3 crore shares.
At the close of bidding, the IPO attracted bids worth ₹1.17 lakh crore, making it the third most bid for PSU IPO, behind Coal India, which received bids worth ₹2.31 lakh crore in 2010, and NHPC, which garnered ₹1.41 lakh crore in 2009.
The stock was originally slated to list on January 16, but the debut was postponed to January 19 after stock exchanges announced a trading holiday on January 15 due to municipal corporation elections in Maharashtra.
Traders and investors continue to price in a strong debut, indicating that the delay has done little to dent confidence around the offering.
Bharat Coking Coal is India's largest producer of coking coal, accounting for about 58.5% of domestic output in FY25. The company operates primarily in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal.
The listing forms part of the government's divestment programme in Coal India subsidiaries. In its prospectus, the company said the IPO would help it realise the benefits of being a listed entity.
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