The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of state-owned Coal India Limited, received an overwhelming response from investors, with the issue being subscribed 146.81 times on the final day of bidding on Tuesday.
According to stock exchange data, the IPO attracted bids for more than 5,095 crore shares, against 34.7 crore shares on offer. The strong demand came from all investor categories, led by institutional buyers.
The Qualified Institutional Buyers (QIBs) segment was subscribed over 300 times, reflecting strong interest from domestic and foreign institutions. The Non-Institutional Investors (NIIs) category also saw heavy participation, with subscriptions exceeding 250 times, while Retail Individual Investors (RIIs) subscribed the issue nearly 49 times. Employee and shareholder portions were also fully subscribed.
The IPO, priced in the range of Rs 21 to Rs 23 per share, was entirely an offer for sale (OFS) by Coal India. As a result, the company itself will not receive any fresh capital from the issue, and the proceeds will go to the parent company. At the upper end of the price band, the IPO values Bharat Coking Coal at over Rs 10,700 crore.
Ahead of the public issue, the company had raised around Rs 273 crore from anchor investors, signalling early confidence in the offering. Market participants said the anchor book and the company’s strong position in the coking coal segment helped boost investor sentiment.
Bharat Coking Coal is one of India’s key producers of coking coal, which is an essential raw material for the steel industry. The company’s mining operations are largely concentrated in Jharkhand and West Bengal, regions known for high-quality coking coal reserves.
Analysts attributed the exceptional subscription to multiple factors, including the company’s strategic importance, steady demand from the steel sector, reasonable valuation, and expectations of listing gains. Reports suggest the IPO received applications from over 90 lakh investors, making it one of the most subscribed public sector offerings in recent years.
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