The initial public offer of Coal India subsidiary, Bharat Coking Coal (BCCL), will be open for subscription on January 9. As per the issue size, stake sale details and IPO pricing, Coal India will be making around 2.3 times profit from the IPO. Coal India is offloading a 10% stake and will be making a profit of a bit over Rs 600 crore from the stake sale in BCCL.
BCCL IPO: Coal India stake valuation
BCCL is a wholly-owned subsidiary of Coal India. The parent company, Coal India, will be offloading 10% or 46.57 crore shares of Bharat Coking Coal. At the upper price band of Rs 23 per equity share, the IPO is raising Rs 1,071.11 crore, and the issue is entirely an offer for sale.
Bharat Coking Coal IPO: Key details
The company has kept the IPO price band in a range of Rs 21 -23 per share. The IPO will raise a total of Rs 1,071.11 crores. The issue is entirely an offer for sale of 46.57 crore shares. It will open for subscription on January 09 and close on January 13. The allotment for the IPO shares is expected to be finalised on January 14. The IPO will list on BSE and NSE on January 16, as per the tentative schedule.
BCCL IPO: GMP
The shares of BCCL were fetching a GMP of 50% to the issue price. The stocks were trading at a price of Rs 34.5 per equity share. This translates to a gain of Rs 6,900 per lot. Though the GMP is slightly lower than the 70% premium it was indicating earlier this week, it still shows robust investor interest.
However, just to remind our readers, the GMP is an unofficial metric of investor sentiment. The actual listing price can be very different.
BCCL IPO: Lot size
A retail applicant needs to apply for a minimum of one lot that contains 600 shares, amounting to Rs 13,800. The lot size investment for a small NII is 15 lots of 9,000 shares, totalling Rs 2 lakh, and for a big NII, it is 73 lots of 43,800 shares, aggregating to Rs 10 lakh.
BCCL IPO: Book running lead manager and registrar
IDBI Capital Markets Services is the book-running lead manager of the IPO, and Kfin Technologies is the registrar of the issue.
About BCCL
Bharat Coking Coal is a wholly-owned subsidiary of Coal India. It was incorporated in 1972 to manage coking coal resources in India. As a ‘Mini Ratna’ public sector undertaking, BCCL is the largest coking coal producer in the country, contributing 58.50% of domestic production in FY25. It is the sole source of prime coking coal in India, with operations concentrated in the Jharia and Raniganj coalfields. The company operates 34 mines and five washeries, providing vital raw materials for the steel and power industries while advancing national energy security.