Bharat Coking Coal (BCCL) will be listed in the stock market today i.e. Monday (January 19). Its IPO received a total of 143.85 times subscription in three days. Whereas in the retail category it was subscribed 49.37 times. According to Gray Market Premium (GMP), it can be listed with a premium of 59%. BCCL’s IPO was open for subscription from January 9. This is the first big public offer of the new year. This is a subsidiary company of Coal India. This company produces ‘coking coal’ which is essential for the steel sector. This entire IPO was ‘Offer for Sale’ (OFS), that is, the money received through it will go directly to the promoter company Coal India. The company had fixed its price band at ₹21 to ₹23 per share. Investors could bid for a minimum lot of 600 shares, entailing an investment of ₹13,800 at the upper end. This issue remained open for subscription till January 13. Earlier its listing was to take place on January 16, which was postponed. Despite being a government company, there are some risks. 59% premium in gray market, expectation of big profits. According to market experts, the share is running at a premium of ₹ 13.5 in the unofficial market (grey market). If this trend continues, investors can make a profit of about 59% on the listing. 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%. The company has a good track record, debt free balance sheet and stable performance on the financial front. 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 the data of FY 2025, 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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Bharat Coking Coal will be listed today: Shares may be listed with 59% premium; The IPO received a total of 143.85 times subscription.
