The Bharat Coking Coal Limited (BCCL) IPO has reached its third and last day of bidding, showing strong momentum and attracting significant interest from various types of investors.
The IPO is backed by strong subscription figures and a healthy grey market premium (GMP), making it one of the most closely watched public offerings in recent weeks.
As the IPO closes today, investors are trying to figure out what the final-day GMP suggests and whether it is a good idea to subscribe at current levels.
What Does the Final-Day GMP Indicate?
On the last day of bidding, Bharat Coking Coal IPO is being offered at a grey market premium of ₹11.
Considering the upper price band of ₹23 per share, this implies an estimated listing price of about ₹34, which means potential gains of almost 46 percent.
The GMP is not an official price, but it often gives an idea of how the market feels about the stock before it starts trading.
In this case, the high premium suggests that people are optimistic about the company’s performance after it starts trading. This optimism is based on high demand and the company’s strong fundamentals. However, it is important to note that the GMP is not a guarantee and can change before the stock starts trading.
Strong Subscription Across Investor Categories
Investor interest in the BCCL IPO has been one of the main highlights of the offering.
By the end of the second day, the IPO was subscribed 33.67 times in total, showing widespread demand.
Retail Individual Investors (RIIs) subscribed to their portion 26.94 times, which shows strong support from smaller investors.
This level of retail participation suggests that investors are confident in the company’s business model and its future prospects.
The Non-Institutional Investor (NII) category showed exceptionally high demand, with subscriptions reaching 96.36 times for the shares reserved for them.
Such high oversubscription in the NII group usually indicates strong expectations for a good performance when the stock starts trading among wealthy investors.
Qualified Institutional Buyers (QIBs) subscribed to their part 1.33 times by the end of the second day.
Although lower than the demand from retail and NII investors, their participation still adds stability and credibility to the IPO.
Key IPO Details at a Glance
The Bharat Coking Coal IPO is a ₹1,071-crore offering, and it is purely an offer for sale by Coal India.
This means the company itself will not receive any new capital from this offering.
The IPO is priced between ₹21 and ₹23 per share, with a face value of ₹10.
The minimum number of shares that can be applied for is 600, making it accessible to a wide range of retail investors. The shares are planned to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Company Overview and Business Strength
Bharat Coking Coal Limited is India’s largest producer of coking coal and the only major domestic supplier of prime coking coal, which is essential for steel manufacturing.
As of April 2024, BCCL’s estimated coking coal reserves are about 7.91 billion tonnes, making up about 21.5 percent of India’s total coking coal reserves.
In fiscal year 2025, the company accounted for 58.5 percent of the domestic coking coal production, highlighting its strategic importance.
As a wholly-owned subsidiary of Coal India, BCCL benefits from strong operational experience, solid financial support, and significant scale advantages.
Financially, BCCL reported revenue of ₹14,401 crore and a profit of ₹1,240 crore in fiscal year 2025.
The company remains debt-free and is cash-generating, although its profit margins have seen some changes due to operational and pricing factors.
What Brokerages Recommend
Brokerage houses have mostly given positive feedback on the IPO.
Anand Rathi Research values BCCL at around 8.64 times the price-to-earnings ratio based on FY25 earnings at the upper price band and recommends subscribing, mainly for potential gains after the stock starts trading.
SBI Securities also advises subscribing at the cut-off price, citing BCCL’s strong position in the domestic market, its large reserves, and an attractive enterprise value to earnings before interest, tax, depreciation, and amortization (EV/EBITDA) valuation of 6.4 times after the issue.
Should You Subscribe?
From a short-term perspective, the strong subscription figures and a healthy GMP suggest that the IPO might perform well upon listing.
From a longer-term view, BCCL’s dominant position in domestic coking coal, stable financials, and support from Coal India offer reassurance.
That said, as this is an offer for sale, long-term investors should carefully consider valuation and sector-related risks.
Overall, the IPO seems suitable for investors looking for potential gains upon listing, with moderate appeal for long-term investors seeking exposure to India’s key industrial supply chain.