The first big mainboard of 2026 – The Bharat Coking Coal IPO finished with a flourish. The issue was subscribed 143.85 times at the end of Day 3. The strong retail participation is what particularly stood out. The retail category was subscribed nearly 50x. The grey market premium is up close to 60% indicating a sharp upswing on listing.
What’s the right strategy for the Rs 1,071.11 crore IPO? The issue price has been fixed at Rs 23 per share and the grey market premium indicates listing around Rs 35 per share. Though the GMP is not an official indicator and the listing price can be very different, the right strategy for investors is crucial. Should investors sell for listing gains, or is it a long-term buy?
Will Bharat Coking Coal IPO deliver a massive listing day surprise or disappoint investors?
A quick look at what top market experts have to say, in terms of their expectations for Bharat Coking Coal listing and the likely strategy going forward–
BCCL: Expect a listing day pop
Sunny Agrawal – Head of Fundamental Research, SBI Securities said a listing pop is likely. He pointed out that “BCCL is India’s largest producer of Coking Coal and accounted for 58.5% of the total domestic production in FY25. Historically, the company has recorded annual revenue growth of 4.6% and PAT growth of 36.6% between FY23-FY25 on a compounded basis. At the upper price band of Rs 23, the issue is valued at FY25 EV/EBITDA multiple of 6.4x respectively based on post-issue capital.”
BCCL: Can Govt’s coal self-sufficiency push make a difference
Another respected voice in market circles, Deven Choksey, Managing Director of DRChoksey FinServ does not expect a huge listing pop and focuses on the long-term value proposition. He highlighted that “BCCL benefits from vast reserves, strategic locations, and CIL backing amid rising coking coal demand driven by steel production. Washery expansions to 20.65 MTPA and CBM projects promise enhanced yields and diversification. Operational challenges like high ash content and contractor reliance persist, but government coal self-sufficiency push supports growth. At the upper end of the price band of Rs 23 per share, valued at EV/EBITDA of 5.5x post-issue, appearing attractive given scale and prospects.”
BCCL: A key long-term bet
According to Sunil Jain, HOD Retail Research Nirmal Bang, the key reasons for their positive recommendation is the company’s future outlook. “Mainly, they have got a very vast reserve of coking coal, which they can explore. And now, the company is shifting more towards the coking coal, which is of a higher grade compared to what they were doing in earlier years. So, they will be using groceries and all more,” he added.
Additionally, he recommends “hold for a longer term.” This is because “they will be selling more towards the steel sector, which has a three- or four-times higher realisation as compared to what they sell to the power sector. So, the long-term outlook on that is why we feel it is positive. Listing gain is possible.”
Overall, most analysts are positive about the long-term prospects of Bharat Coking Coal. They do not rule out a listing day pop and recommend investors hold the stock for a longer time frame.