Coal India’s arm Bharat Coking Coal (BCCL) has set a date for its Initial Public Offer. The BCCL IPO will open on January 09. The company has set the issue price band between Rs 21 and Rs 23 per equity share. The company aims to raise Rs 1,071.11 crore via the IPO.
The issue is entirely an offer for sale of 46.57 crore shares, and the IPO bidding will close on January 13.
Bharat Coking Coal IPO: GMP trending up
The shares of BCCL are fetching a premium of more than 70% in the grey market. The stock was changing hands at a price of Rs 39.25 in the illegal market. This translates to an estimated profit of Rs 9,750 on one lot.
However, investors must understand that the grey market is an unofficial place where shares are exchanged illegally.
Bharat Coking Coal IPO: Allotment and listing
The allotment for the IPO is expected to be finalised on January 14, while the listing on exchanges, BSE and NSE, is likely to be on January 16, as per the tentative schedule.
Bharat Coking Coal IPO: Lot size
A retail applicant needs to apply for a minimum of one lot that contains 600 shares, amounting to Rs 13,800 on the upper price band. The lot size investment for a small NII is 15 lots of 9,000 shares, aggregating to Rs 2 lakh, and for a big NII, it is 73 lots of 43,800 shares, totalling to Rs 10 lakh.
Bharat Coking Coal IPO: Key financials
The company’s net profit in FY25 declined to Rs 1,240.2 crore, compared with Rs 1,564.5 crore posted in FY24. BCCL’s net profit grew at a CAGR of 36.59% from FY23 to FY25. The coal company’s total revenue from operations decreased by 0.33% year-over-year to Rs 13,998.45 crore in FY25 from Rs 14,045.34 crore in FY24.
Bharat Coking Coal IPO: Book runner and registrar
IDBI Capital Markets Services is working as the book-running lead manager of the issue, and Kfin Technologies is the registrar for the IPO.
About Bharat Coking Coal
Bharat Coking Coal is engaged in the business of mining and supplying coking coal, non-coking coal, and washed coals. These coals are mainly used in the steel and power industries. The purpose of incorporating BCCL was to mine and supply coking coal concentrated in the Jharia, Jharkhand, and Raniganj, West Bengal coalfields.