BCCL IPO Listing: Coking Coal Producer’s Shares Make Stellar Debut With 96% Premium

BCCL IPO Listing Price: The first mainboard listing of the new calendar year took place on January 19 as shares of Bharat Coking Coal (BCCL) made their debut on the NSE and BSE. Shares of the coking coal producer made a stellar debut on the exchanges. BCCL shares listed with over 96 per cent premium compared to the issue price.

BCCL shares made their debut at Rs 45 per share with gains of 95.65 per cent against the issue price of Rs 23 per share. BCCL shares listed at Rs 45.21 apiece on the BSE with a premium of 96.56 per cent.

Retail investors who were allotted a minimum of one lot or 600 shares would have gained at least Rs 13,326 (Rs 45.23 - Rs 23 x 600). As many as 6.12 million shares of BCCL changed hands on the BSE and the total market capitalisation of the company stood at Rs 21,054.30 crore.

BCCL IPO: Details

BCCL raised Rs 1,071.11 crore through its public issue. The coking coal producer’s public issue consisted of an offer-for-sale of 465.7 million shares.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 600 shares, which aggregated to an investment of Rs 13,800. BCCL IPO saw stellar demand in its three-day subscription window. BCCL IPO was subscribed 146.87 times across categories. As many as 50.95 billion shares of BCCL were bid for against the 346.9 million shares offered for subscription.

In the three-day bidding window, qualified institutional bidders led the demand for BCCL shares, booking their quota 310.81 times. On the other hand, non-institutional investors and retail individual investors booked their quota 258.16 times and 49.33 times respectively. Employees of the company and shareholders of Coal India subscribed their quotas 5.18 times and 87.29 times respectively.

BCCL: Business Model

Bharat Coking Coal (BCCL) is a subsidiary of Coal India (CIL) and operates as a specialised mining entity. The company’s business model is centred around the extraction and beneficiation of high-grade coal. The coal produced by the company is used by the steel and power industries. The state-owned company’s subsidiaries are focused in Jharkhand and West Bengal. The company primarily generates revenue through the sale of coal and value-added coal products.

Coal India’s Value Unlocking Strategy

Following the strong investor response to BCCL’s public issue, CIL now plans to list its other subsidiaries according to a report which cited CIL, Chairman-cum-Managing Director B Sairam. The Central Mine Planning and Design Institute (CMPDI) , one of CIL’s subsidiaries, has filed its draft papers with the Securities Exchange Board of India (Sebi). Additionally the CIL board has also granted in-principle approval for listing Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL), targeting listing for the 2026-27 financial year according to the report.

BCCL: Listed Peers

The company’s competitors include Central Coalfields in the coking coal segment. On the other hand, the coking coal producers in India such as SAIL and Tata Steel do not sell coking coal and instead consume it for captive purposes.

At the time of writing, shares of Bharat Coking Coal shares traded at Rs 43.90 apiece down by 10.88 per cent on the BSE. On the NSE, shares of BCCL traded at Rs 41.85 down by 7 per cent.