BCCL IPO listing: PSU stock debuts at 96% premium, adds ₹358 crore to investor wealth

After garnering an overwhelming response for its ₹1,071-crore initial public offering (IPO), shares of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India , made a strong debut on the domestic bourses, beating Street expectations.

BCCL shares listed at ₹45.21 on the BSE, a premium of 96.57% over the issue price of ₹23 apiece, valuing the company at ₹ 21,054.30. The market capitalisation (m-cap) of coal mining company rose by ₹358.59 crore, with more than 61 crore shares changing hands over the counter in the opening trade. NSDL’s market value stood at ₹20,695.71 crore before its listing.

On the NSE, the PSU stock debuted at ₹45, up 95.65% over the IPO price. Meanwhile, shares of parent Coal India slipped 0.3% to ₹429.75 in the early trade. Equity benchmarks Sensex and Nifty were also trading lower by about 0.6%, tracking weak global cues after US President Donald Trump threatened to impose taxes on European countries for opposing his plans to acquire Greenland.

The listing of the BCCL IPO was better than the Street expectations, as the PSU stock had been trading at a 60% premium in the grey market. BCCL shares were commanding a grey market premium (GMP) of around ₹13.5 in the unlisted market, indicating a listing price of about ₹36.5, nearly 58.7% higher than the issue price.

IPO garners ₹1.17 lakh crore bids

State-owned BCCL, the country’s largest coking coal producer, received strong response for its IPO, garnering bids worth ₹1.17 lakh crore and achieving an overall subscription of 146.8 times, driven by record demand from institutional and high-net-worth investors.

The IPO attracted bids for 5,093 crore shares against an issue size of 34.69 crore shares, making it one of the most heavily subscribed public offerings in recent times. Priced in the range of ₹21–23 per share, the issue was open for subscription from January 9 to January 13.

According to exchange data, the qualified institutional buyers (QIB) portion was subscribed a record 310.81 times, with bids for 2,461 crore shares against an allocation of 7.91 crore shares. Within the QIB category, foreign institutional investors (FIIs) placed bids worth ₹7.43 lakh crore, while domestic financial institutions—including banks, insurance companies and other FIs—submitted bids worth ₹10.09 lakh crore. Mutual funds accounted for bids worth ₹1.07 lakh crore.

The non-institutional investor (NII) segment was subscribed 258.02 times, supported by strong participation from high-net-worth individuals. The category for applications above ₹10 lakh was subscribed 275.64 times, while the ₹2–10 lakh segment saw subscriptions of 222.78 times.

Retail investor interest was also robust, though relatively lower than institutional demand, with the segment subscribed 49.25 times. The employee reservation portion was booked 5.17 times, while the shareholder reservation category was subscribed 87.20 times.

The BCCL IPO was entirely an offer for sale (OFS) of 46.57 crore equity shares by its parent, Coal India, through which the country’s largest coal miner diluted a 10% equity stake in India’s largest coking coal producer.

Ahead of the public issue, BCCL raised ₹273.10 crore from anchor investors by allotting 11.87 crore shares at the upper end of the price band at ₹23 apiece.

Incorporated in 1972, BCCL mines and supplies various grades of coking coal, non-coking coal and washed coal, primarily catering to the steel and power sectors. Its operations are concentrated in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal—India’s only significant source of prime coking coal.

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