Bharat Coking Coal IPO: ₹1,071 Crore Issue Opens Jan 9, 2026

Introduction to Bharat Coking Coal IPO

Bharat Coking Coal Limited (BCCL), a wholly-owned subsidiary of the state-run Maharatna company Coal India Limited, is set to launch its Initial Public Offering (IPO) on January 9, 2026. The public issue, valued at ₹1,071.11 crores, is entirely an Offer for Sale (OFS) by its promoter, Coal India. The IPO subscription window will remain open for five days, concluding on January 13, 2026. The company aims to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with the tentative listing date scheduled for January 19, 2026.

IPO Offer Details and Structure

The IPO consists of an offer for sale of 46.57 crore equity shares. The price band for the issue has been fixed at ₹21 to ₹23 per equity share. The issue is a book-built offer, and the company will not receive any proceeds from the IPO as it is entirely an OFS. The primary objective of the listing is to achieve the benefits of having the equity shares traded on the stock exchanges.

Investment and Lot Size

Retail investors are required to apply for a minimum of one lot, which comprises 600 shares, translating to a minimum investment of ₹13,800 at the upper price band. The maximum investment for a retail investor is capped at 14 lots (8,400 shares), amounting to ₹1,93,200. For Small Non-Institutional Investors (sNII), the minimum investment is 15 lots (9,000 shares) for ₹2,07,000, while for Big Non-Institutional Investors (bNII), it is 73 lots (43,800 shares) for ₹10,07,400.

Company Overview

Incorporated in 1972, Bharat Coking Coal Limited is India's largest producer of coking coal, a critical raw material for the steel industry. As of September 30, 2025, BCCL operates a network of 34 mines, including opencast, underground, and mixed mines, primarily located in the Jharia and Raniganj coalfields. In Fiscal 2025, the company accounted for 58.50% of India's total domestic coking coal production. With estimated coking coal reserves of approximately 7,910 million tonnes as of April 1, 2024, BCCL is strategically positioned to benefit from the growing demand for steel in the country.

Financial Performance

BCCL has demonstrated a mixed financial performance over the past few fiscal years. While total income has remained relatively stable, profit after tax has shown fluctuations. The company's net worth has seen consistent growth, indicating a strengthening balance sheet.

Shareholder and Employee Quotas

The IPO includes specific reservations for different investor categories. A significant portion of 10% of the issue, or 4.65 crore shares, is reserved for existing shareholders of Coal India Limited. Additionally, 5% of the issue, or 2.32 crore shares, is reserved for eligible employees, who will be offered a discount of ₹1.00 per share on the final issue price.

Investor Allocation

The allocation for the IPO is structured to cater to various investor segments. Qualified Institutional Buyers (QIBs) are allocated 42.50% of the shares, Non-Institutional Investors (NIIs) get 12.75%, and Retail Individual Investors (RIIs) are allotted 29.75%. Anchor investors were allocated 25.50% of the total issue size. The company successfully raised ₹273.13 crores from anchor investors on January 8, 2026, with notable participation from entities like Life Insurance Corporation of India (LIC), Nippon India Mutual Fund, and Bandhan Mutual Fund.

Subscription Status

The IPO received an overwhelming response from investors across all categories, indicating strong market demand. The issue was subscribed 146.87 times overall by the end of the final day of bidding. The QIB portion was subscribed 310.81 times, the NII portion saw a subscription of 258.16 times, and the retail category was subscribed 49.33 times. The employee and shareholder quotas were also well-received, with subscriptions of 5.18 times and 87.29 times, respectively.

Promoter Holding and Market Capitalization

Prior to the IPO, the promoter, Coal India Limited, held a 100% stake in BCCL. Following the offer for sale, the promoter's holding will be reduced to 90%. The pre-issue market capitalization of the company stands at ₹10,711.10 crores. The post-issue Price-to-Earnings (P/E) ratio is calculated to be 43.23, based on the upper price band.

Conclusion

The Bharat Coking Coal IPO presents an opportunity for investors to participate in the growth story of India's largest coking coal producer. The strong subscription figures reflect high investor confidence, driven by the company's dominant market position and the essential nature of its product for the steel industry. The allotment of shares is expected to be finalized on January 14, 2026, with the stock making its debut on the exchanges on January 19, 2026.