BCCL IPO opens today after ₹273 crore anchor raise; GMP signals strong demand
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Bharat Coking Coal Ltd (BCCL), the largest producer of coking coal in India, has secured ₹273.10 crore from anchor investors ahead of opening of its initial public offering (IPO) today. The public sector entity, which is 100% owned by Coal India, allotted 11.87 crore shares at the upper end of the price band at ₹23 each, as per a filing on the BSE.
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.
January 2026
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Key things to know about BCCL IPO
The state-owned company looks to raise ₹1,071 crore at the upper end of the price band at ₹21-23 per share. The company has proposed to offer a discount of ₹1 per share to its eligible employees.
The PSU 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.
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.
Meanwhile, shares worth ₹107 crore have been reserved for eligible shareholders of Coal India under a dedicated shareholder quota. Investors who held Coal India shares on or before January 1, 2026, and continue to hold them as of the record date, will be eligible to apply in this category, as per the offer documents.
The minimum application amount for a retail investor is ₹13,800 for one lot of 600 shares.
Analysts give ‘Subscribe’ call
Analysts have recommended a ‘subscribe’ rating for the BCCL IPO, citing its attractive valuation, high entry barriers and sustained long-term demand from the steel sector.
Rajan Shinde, Research Analyst at Mehta Equities, said the issue offers investors exposure to a strategically critical asset with a dominant position in India’s coking coal value chain. Backed by Coal India’s technical and financial strength, BCCL is well positioned to benefit from structural demand tailwinds and the government’s push toward import substitution, he noted.
“We expect the IPO to witness strong participation from both institutional and retail investors, driven by steady cash flows, high entry barriers and the scarcity value of coking coal assets in India. Accordingly, we recommend subscribing to the BCCL IPO for healthy listing gains,” Shinde said.
Analysts at Anand Rathi also advised subscribing to the issue for listing gains, noting that the company is fairly valued. “BCCL, which commands a strong market share, is valued at 8.64 times FY25 earnings at the upper price band. Given its consistent operating track record and superior financial metrics, the valuation appears fully priced in,” the brokerage said.
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 industries. 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.
GMP signals strong demand
Shares of BCCL are witnessing strong investor interest in the grey market ahead of the IPO opening, with the issue commanding a healthy grey market premium (GMP).
The BCCL IPO GMP currently stands at ₹11.4, a premium of 49.6% over the IPO price of ₹23, implying a potential listing price of around ₹34.4 per share. Data from Investorgain showed that the GMP has cooled from its peak of ₹16.25 recorded on January 4.
The allotment of BCCL shares to eligible shareholders is expected to be finalised on January 14, while shares are expected to make debut on the BSE and NSE on January 16, 2026.