The ₹1,071-crore initial public offering (IPO) of Bharat Coking Coal Limited (BCCL) saw strong investor demand on the first day of bidding, with the issue subscribed 8.09 times, driven by robust participation from non-institutional and retail investors.

Data available with the exchanges showed that bids were received for 280.61 crore shares worth around ₹6,500 crore against an offer size of 34.69 crore shares.

The non-institutional investor (NII) segment emerged as the biggest contributor, with its quota subscribed 16.39 times. Within this category, bids above ₹10 lakh were subscribed 15.21 times, while bids in the ₹2–10 lakh range saw an even higher subscription of 18.77 times.

The portion reserved for retail individual investors (RIIs) was subscribed 9.26 times, while the shareholder reservation quota was booked 10.86 times. The employee-reserved portion was subscribed 0.83 times by the end of the day.

Meanwhile, the qualified institutional buyers (QIB) segment saw muted response on Day 1, with the category subscribed just 0.30 times.

The BCCL IPO is entirely an offer for sale (OFS) of 46.57 crore equity shares by its parent, Coal India. Under the OFS, the country’s largest coal miner will offload a 10% equity stake in BCCL at a price band at ₹21-23 per share.

As per the DRHP filed with Sebi, the company has reserved 50% of the issue for qualified institutional buyers (QIBs), while retail and non-institutional investors will get 35% and 15%, respectively, of the offer. The PSU has reserved shares worth ₹107 crore for eligible shareholders of Coal India under a dedicated shareholder quota, which will be offered at a discount of ₹1 per share.

Ahead of the IPO, BCCL, the largest producer of coking coal in India, secured ₹273.10 crore from anchor investors by allotting 11.87 crore shares at the upper end of the price band at ₹23 each.

The anchor allocation garnered strong interest from a mix of global and domestic institutions, including Life Insurance Corporation, Societe Generale, Copthall Mauritius Investment Ltd, Citrine Fund, M7 Global Fund PCC - ASAS Global Opportunities Fund, Maybank Securities and Rajasthan Global Securities Private Ltd. Out of the total allocation, 7.17 crore were allocated to 3 domestic mutual funds through 8 schemes.

Amongst equity-oriented schemes, the company has allocated shares to UTI Dividend Yield Fund and other schemes of UTI, Nippon Life India Trustee - A/C Nippon India Small Cap Fund and Bandhan Small Cap Fund.

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