Investors responded enthusiastically to the opening of the Bharat Coking Coal IPO. Day 2 of the IPO has seen almost 30 subscriptions overall, with 20.7 subscriptions coming from the retail segment. Due to its attractive IPO price range, high GMP, and monopoly business, the BCCL IPO is experiencing robust subscription.
On January 9, the Bharat Coking Coal IPO opened to an enormous reaction from investors. The subsidiary of Coal India, which intends to raise ₹1,071 crore through its public offering, witnessed nearly 8 times the number of subscriptions at the end of Day 1 and was fully subscribed within 30 minutes of opening.
Bharat Coking Coal IPO details
| BCCL IPO | Key details |
|---|---|
| IPO date | January 9 to January 13, 2026 |
| Price band | ₹21 to ₹23 per share |
| Lot size | 600 Shares |
| Issue Size | ₹1,071 crore |
| Minimum Investment | ₹13,800 per lot at the upper end of price band |
| Shareholder quota | 10% of issue size reserved for Coal India shareholders |
Day 2 of the Bharat Coking Coal IPO is still receiving a lot of interest, with xx subscriptions from retail investors. Up until 3:30 pm on Day 2, the IPO is scheduled about thirty times. Investors continue to respond enthusiastically to the Bharat Coking Coal IPO despite it being a full offer-for-sale, and it may rank among the most subscribed IPOs of 2026. Are you wondering why there is such a strong reaction to the BCCL IPO?
The following are the five most likely explanations for the boisterous reaction from investors to this IPO:
A desirable pricing range for an IPO
The pricing range of ₹21 to ₹23 per share for the Bharat Coking Coal IPO is quite appealing, making the offer accessible and cheap even for the tiniest retail investors. Furthermore, Coal India, the corporation’s parent company, supports it as a public sector undertaking (PSU). PSU businesses frequently attract a significant portion of investors in Indian markets due to their stability, government support, and consistent dividend payments.
For example, in November 2023, the PSU company Indian Renewable Energy Development Agency (IREDA) released a product with a price range of ₹30 to ₹32. The IREDA stock listed at about ₹50 per share, a premium of 56%, and is currently trading at about ₹138 per share. The IPO was subscribed to about 39 times.
Similarly, PSUs like Coal India and IREDA have nearly 28 lakh retail shareholders, while State Bank of India (SBI) has around 37 lakh public shareholders despite being majority-owned by the Government of India. In comparison, private banks such as ICICI Bank and HDFC Bank, which are fully publicly owned, have about 21 lakh and 36 lakh public shareholders, respectively.
Besides this, some of the recent IPOs like Belrise Industries, Groww, and Meesho, which were priced lower, saw huge subscriptions in the range of 18 to 82 times.
Bharat Coking Coal IPO shareholder quota
Bharat Coking Coal, which is a wholly owned subsidiary of Coal India, has reserved shares worth ₹107.1 crore for Coal India shareholders (10% of the issue size). However, under the shareholders’ quota, there will be no further discount for the IPO applicants.
As per the BCCL RHP, investors who held Coal India shares on or before January 1, 2026, will be eligible to apply under the shareholder quota for the BCCL IPO. The BCCL shareholder quota is only available for Individual investors and HUF investors.
BCCL IPO GMP
BCCL IPO grey market premium (GMP) is currently in the range of 45-46%. Strong early demand in the unofficial grey market indicates that the company’s IPO could see a huge response and investor interest amid attractive GMP.
BCCL monopoly business model
Over the years, Bharat Coking Coal has created a monopoly status in the business segment it operates. The company produces various grades of coking coal, which have high carbon content and are different from thermal coal used in power generation. As a result, coking coal plays a key role in India’s steel-making value chain. The company’s cooking coal is used in a steel blast furnace to turn iron ore into steel. This high-grade steel is required for every infrastructure development and construction activity.
BCCL is one of the largest domestic producers of coking coal, contributing 58.50% to India’s total coking coal production in FY25, through its 34 mines, including 26 opencast mines, 4 underground mines, and 4 mixed mines.
Consistent revenue and net profit growth
| (₹ crore) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 12,624 | 14,245 | 13,802 |
| Total Assets | 13,312 | 14,727 | 17,283 |
| Net Profit | 664.7 | 1,564.4 | 1,240.1 |
| EBITDA | 891.3 | 2,493.8 | 2,356.0 |
Revenue from Bharat Coking Coal increased by roughly 12.8% from ₹12,624 crore in FY23 to ₹14,245 crore in FY24, but then slightly decreased by 3% to ₹13,802 crore in FY25. In the meantime, EBITDA increased at a CAGR of 62.5% between FY23 and FY24, while net profit increased dramatically by 36.5% CAGR. BCCL has a steady cash flow overall and has lately begun to pay dividends. Additionally, as the company has no debt, any operating profits are probably going to be invested in the company or distributed as dividends.
Overall, investors find BCCL’s IPO to be highly appealing because to its monopoly business, steady profitability, and solid support. However, the IPO also carries some concerns, such as the company’s reliance on a small number of large corporations for generating income (the top 10 customers generated 83.89% of revenue in the six months ending September 30, 2025, and 88.88% in FY25).
The cyclical nature of commodities and worldwide commodity prices affect the company. Additionally, the company’s mining operations carry a risk of environmental and safety problems.
