Bharat Coking Coal IPO: GMP surges for first mainboard IPO of 2026 ahead of opening

Bharat Coking Coal Ltd. (BCCL), a wholly owned subsidiary of Coal India Ltd., is set to launch the first mainboard initial public offering (IPO) of 2026.

Through the IPO, Coal India is looking to divest

a 10% stake via an Offer for Sale (OFS) and raise ₹1,071 crore.

Ahead of the issue opening, shares of Bharat Coking Coal are seeing strong interest in the unofficial market, with the grey market premium hovering close to 50%, indicating robust listing expectations.

While the premium has eased marginally in recent sessions, it continues to signal healthy debut gains. Market participants, however, caution that grey market premiums only reflect sentiment in the unlisted market and can change quickly.

The company has fixed a price band of ₹21 to ₹23 per share for the ₹1,071 crore issue.

Retail investors can apply for a minimum lot of 600 shares, requiring an investment of ₹13,800 at the upper end of the price band, and in multiples of 600 shares thereafter.

The issue allocation stands at 35% for retail investors, 50% for qualified institutional buyers and 10% for non institutional investors.

Shares worth ₹107 crore have been set aside for eligible Coal India shareholders. Investors holding 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 about ₹10,711 crore.

The three-day public offer 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 OFS, with parent Coal India reducing its stake by 10%.

Following the listing, Coal India's stake in the company will decline to 90% from the current 100%, remaining well above the minimum public shareholding requirement.

Bharat Coking Coal is India's largest producer of coking coal, accounting for around 58.5% of the country's total domestic coking coal 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 shares expected to list on the exchanges on Friday, January 16.

The proposed listing is part of Coal India's broader plan to take all its subsidiaries public by FY30, according to reports. Shares of Coal India are currently trading 1.49% lower at ₹425.20.