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Bharat Coking Coal (BCCL) IPO opens for subscription from today, January 9. This is the first big public offer of the new year. This is a subsidiary company of Coal India.
In the gray market, this share is trading 50% above its issue price, which is indicating its strong listing. This company produces ‘coking coal’ which is essential for the steel sector.
Price band fixed at ₹21-23, Coal India will sell shares
This entire IPO is ‘Offer for Sale’ (OFS), that is, the money received through it will go directly to the promoter company Coal India. The company has fixed its price band at ₹21 to ₹23 per share. Investors can bid for a minimum lot of 600 shares, entailing an investment of ₹13,800 at the upper end. This issue will remain open till January 13.
Method of IPO subscription
If you use PhonePe, Google-Pay or Paytm and you already have a demat account with a broker like Zerodha, Groww, then this can be done easily. Go to the app and search ‘BCCL IPO’. Fill the details and approve the payment by entering the UPI ID.
The allotment of shares in IPO is done through computerized draw, in which the names of all the investors who apply are selected randomly. If the IPO is oversubscribed, it is not possible for everyone to get shares. Therefore, shares are allotted to only a few people.
Despite being a government company, there are some risks
- This is ‘Offer for Sale’. That means the money you invest will go to Coal India and not to the company to expand its business. At the same time, the performance of government companies depends on government policies and coal prices in the global market.
- The company’s operations are limited to certain geographical areas (Jharia and Raniganj). In such a situation, any kind of environmental or regulatory disruption there can have a direct impact on production. This may have a negative impact on the company
BCCL is a government company and produces special coal used in steel making.
50% premium in gray market, big profits expected
According to market experts, the share is trading at a premium of ₹ 11-12 in the unofficial market (grey market). If this trend continues, investors can make profits of about 50% on the day of listing itself. However, experts say that GMP only reflects the market sentiment and it can change depending on the global market conditions. After listing, Coal India’s stake in this company will reduce to 90%.
Investors can invest money for listing gain
Anand Rathi Research has given ‘Subscribe’ rating to this IPO. The brokerage believes that given the company’s strong market hold and its usefulness in the steel industry, there is a possibility of good profits on listing. However, in the long term, investors should proceed with caution as coking coal prices depend on global market fluctuations.
Company’s track record is good, debt free balance sheet
The company’s performance on the financial front has been stable. In the financial year 2025, the company’s revenue was about ₹ 13,803 crore and profit was ₹ 1,564 crore. The biggest strength of the company is that it is completely debt-free and has huge cash flow.
BCCL alone produces 58% of the country’s coking coal.
According to FY 2025 data, BCCL’s share in domestic production is 58.50%. As of April 1, 2024, the company had reserves of about 7,910 million tonnes of coal. The company mainly produces coal for the steel and power sectors.
The company has increased its capacity by increasing the use of ‘Heavy Earth Moving Machinery’ (HEMM) from 2021. Currently the company is operating 34 mines. The company is spread over a total lease area of 288.31 square kilometers in Jharia and Raniganj Coalfields.
What is coking coal and why is it in demand?
Common coal is mostly used to generate electricity, but coking coal is used in steel making furnaces. India imports a lot of coking coal for its needs, in such a situation the role of a domestic company like BCCL becomes very important.
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