Bharat Coking Coal IPO: This year’s first initial public offering (IPO) is set to open this week on January 9, with Bharat Coking Coal‘s (BCCL) ₹1,071-crore offer. The Coal India subsidiary and largest coking coal producer in India announced the price band for its offer earlier this week at ₹21 to ₹23 per share.
Investors can apply for the BCCL IPO in lots of 600 shares, requiring a minimum investment of ₹13,800 at the upper end of the price band by a retailer.
Shares of the company will list on Friday, January 16, on both BSE and NSE.
BCCL IPO GMP
Ahead of the offer launch, BCCL IPO is witnessing a strong trend in the grey market. As per data from investorgain.com, BCCL IPO grey market premium (GMP) today is ₹11.1. This means that BCCL shares are trading ₹11.1 above the upper end of the offer price.
At the current Bharat Coking Coal IPO GMP, shares could see a listing pop of 48%. However, investors must note that GMP is subject to swift changes, and investors should consider other factors like risk appetite and company fundamentals while applying for the offer.
BCCL IPO: 10 key things from RHP
Ahead of the offer launch, here are the key things that investors must know about BCCL IPO from its RHP.
1. BCCL IPO Dates
The BCCL IPO will open for bidding on Friday, January 9 and close on Tuesday, January 13. The anchor book for BCCL IPO will open on January 8.
2. BCCL IPO Structure
BCCL IPO is entirely an offer for sale by its promoter Coal India. This means that proceeds from the IPO will go to the Maharatna PSU and will not be received by the company. As per Mint’s calculations, Coal India will pocket over ₹600-crore gain from BCCL IPO.
3. BCCL IPO Objective
Since IPO is entirely on OFS, and no proceeds will be received by the company, BCCL has listed its objective as follows:
⦁ Achieve the benefits of listing the equity shares on the stock exchanges
⦁ Listing to enhance visibility and brand image, and provide liquidity for its shares
4. BCCL largest coking coal producer
BCCL is the largest coking coal producer in India in Fiscal 2025 in terms of coking coal production, accounting for 58.50% of domestic coking coal production during the year, as per a Crisil report.
5. Coal production
Incorporated in 1972 to mine and supply coking coal, BCCL’s operations concentrated in mines located in the Jharia coalfields in Jharkhand and the Raniganj coalfields in West Bengal. Since then, it has expanded operations significantly, with coal production increasing from 30.51 million tonnes in Fiscal 2022 to 40.50 million tonnes in Fiscal 2025, representing a growth of 32.74% over Fiscal 2022.
6. Key customers
The company has several large companies, including thermal power generating companies, steel producers and industrial companies, both in the public and the private sector, as its customers, with whom it shares a long-standing relationship.
As per the RHP, its clientele also includes PSUs such as Damodar Valley Corporation, Steel Authority of India Limited, Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, Punjab State Power Corporation Limited, National Thermal Power Corporation Limited, Jhajjar Power Limited and Maithon Power Limited.
7. Financials
The company has reported a strong jump in revenue and profit between FY25 and FY23. The revenue as of FY25 stood at ₹13,802.5 crore as against ₹14245.8 crore in FY24 and ₹12,624 crore in FY23. Meanwhile, the profit in FY25, FY24 and FY23 stood at ₹2,356.06 crore, ₹2493.89 crore and ₹891.31 crore, respectively.
8. Company peers
As per the RHP, there are no Indian listed industry peers of comparable size or line of business. It has listed Warrior Met Coal (P/E of 19.44 times) and Alpha Metallurgical Resources (P/E of 14.87 times), both listed on the New York Stock Exchange, as industry peers.
9. Key risks
The company’s mines and washeries are concentrated in Jharia, Jharkhand, and Raniganj, West Bengal. The eventual exhaustion of coal reserves in these areas, or the inability to successfully exploit existing reserves, may adversely affect business, results of operations, financial condition, and cash flows.
A significant portion of the revenues is derived from the production of raw coking coal, which accounted for 77.20%, 74.13%, 75.72%, 75.75%, and 74.79% of revenue from operations in the six-month periods ended September 30, 2025 and 2024, and in Fiscals 2025, 2024, and 2023, respectively, creating concentration risk.
10. Industry overview
Coal and iron ore are the bedrock of India’s mineral wealth, playing a critical role in driving the nation’s industrial and economic progress. In Fiscal 2025, the coking coal demand is 67 MMT and is expected to reach 138 MMT in Fiscal 2035.
The total coking coal supply shows a surplus in most years, which is not the case as very limited coking coal is directly being used in the steel industry owing to the inferior quality of Indian coking coal. Going ahead, though the coking coal supply is expected to be more than the demand, as per a Crisil report.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions.
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