🏢 Company Overview Bharat Coking Coal Limited (BCCL)
Name: Bharat Coking Coal Limited (BCCL)
Founded: 1972 (incorporated on 1 January 1972)
Headquarters: Dhanbad (with operations in Jharkhand & West Bengal)
Type: Public Sector Undertaking (Subsidiary of Coal India Limited)
Ownership: Owned by Ministry of Coal, Government of India through Coal India Limited
Status: Mini-Ratna Company (a status conferring enhanced autonomy)
Industry: Coal mining – primarily coking coal
📅 IPO Timeline
| Event | Date |
|---|---|
| Anchor Investor Bidding Opens | January 8, 2026 |
| IPO Opens for Subscription | January 9, 2026 |
| IPO Closes | January 13, 2026 |
| Basis of Allotment | January 14, 2026 |
| Refunds & ASBA Unblocking | January 15, 2026 |
| Shares Credited to Demat | January 15, 2026 |
| Expected Listing on NSE/BSE | January 16, 2026 |
Highlight
Here are the key highlights of Bharat Coking Coal Limited (BCCL):
- Coal Reserves: ~7.9 billion tonnes
- Established: 1972
- Type: Government of India Public Sector Undertaking (PSU)
- Parent Company: Coal India Limited
- Headquarters: Dhanbad, Jharkhand
- Core Business: Mining and supply of coking coal, non-coking coal, and washed coal
- Market Position: Largest producer of coking coal in India
- Industry Importance: Vital supplier to steel, power, and core industries
- Operational Areas:
- Jharia Coalfield (Jharkhand)
- Raniganj Coalfield (West Bengal)
- Mines Operated: 30+ (opencast & underground)
- Share of Domestic Coking Coal: ~58%
- Status: Mini-Ratna PSU
- Employees: ~38,000+ workforce
- Strategic Role:
- Reduces India’s dependence on imported coking coal
- Supports national infrastructure and industrial growth
Business Model of BCCL IPO:
- BCCL mines and sells coking and non-coking coal, mainly for the steel industry.
- Revenue comes from coal sales through long-term supply agreements and e-auctions.
- It operates opencast and underground mines, supported by contractors under the MDO model.
- Coal washeries add value by improving coal quality and pricing.
- As a PSU, it works under government regulation with assured long-term demand.
📌 Bharat Coking Coal IPO — Basic Details
| Book-built Offer for Sale (OFS) — no fresh issue to the company | Details |
|---|---|
| Company | Bharat Coking Coal Limited (BCCL) |
| IPO Type | Book-built Offer for Sale (OFS) — no fresh issue to company |
| Total Issue Size | ₹1,071.11 crore (~46.57 crore shares) |
| Price Band | ₹21 – ₹23 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Lead Managers | IDBI Capital Markets & Securities Ltd and ICICI Securities Ltd |
| Registrar | KFin Technologies Ltd |
| Listing | NSE & BSE mainboard |
| Offer Structure | Pure OFS — company does not receive IPO proceeds |
| Employee/Shareholder Reservation | Yes, reserved quotas (e.g., employee discount ₹1 per share) |
| Grey Market Premium | Indicative high GMP reported pre-listing (varies) |
📊 IPO Share Reservation Structure
The total IPO comprises 46,57,00,000 equity shares (pure offer-for-sale by Coal India).
Reserved Portions:
- Qualified Institutional Buyers (QIBs): Up to 50 % of the net offer (largest institutional portion).
- Retail Individual Investors (RIIs): 35 % of the net offer.
- Non-Institutional Investors (NIIs): 15 % of the net offer.
Special Reservation Categories:
- Employees: ~2,32,85,000 shares (~5 % of the issue) reserved for eligible BCCL employees (with a ₹1 per share discount).
- Coal India Shareholders (Shareholder Quota): ~4,65,70,000 shares (~10 % of the issue) reserved for eligible shareholders of Coal India who held shares by the record date.
👉 Note: The employee and shareholder reservations are carved out before distributing the remaining shares to the usual QIB/Retail/NII buckets.
📌 Summary Table (Approx.)
| Category | Allocation |
|---|---|
| QIB (Institutions) | ~50 % |
| Retail Investors | ~35 % |
| Non-Institutional Investors (NIIs) | ~15 % |
| Employees (Reserve Portion) | ~5 % |
| Coal India Shareholders (Reserve Portion) | ~10 % |
💰 Investment & Application Size
| Investor Category | Minimum Lot (Shares) | Min Investment @ ₹23 |
|---|---|---|
| Retail Individual Investor (RII) | 1 lot (600) | ₹13,800 |
| Retail — Max Lots | 14 lots (8,400) | ₹1,93,200 |
| Small Non-Institutional Investor (sNII) | 15 lots (9,000) | ₹2,07,000 |
| Big Non-Institutional Investor (bNII) | 73 lots (43,800) | ₹10,07,400 |
📊 Subscription & GMP (Unofficial Indicative)
| Metric | Observed |
|---|---|
| Subscription | Oversubscribed multiple times on Day 1 (strong retail & NII interest) |
| Grey Market Premium (GMP) | Reported high GMP (indicative listing premium) — varies (~₹10-₹14+ per share), subject to change |
| Expected Listing Price Range | Implied ₹30+ based on GMP, but not guaranteed |
⚠️ GMP is unofficial and can fluctuate. It does not guarantee listing prices.
📌 Quick Highlights
| Aspect | Notes |
|---|---|
| First Mainboard IPO of 2026 | Yes — BCCL is the inaugural mainboard public issue this year |
| Pure OFS | No fresh shares; all sale proceeds go to selling shareholder (Coal India) |
| Strong Demand | Oversubscription and high GMP suggest strong investor appetite |
| Strategic Sector | Coking coal is key for steel industry feedstock |
| Retail Friendly | Relatively lower lot size and investment requirement |
⭐ IPO Strengths
- Market Leadership: BCCL is India’s largest producer of coking coal, supplying around 58.5% of domestic output, giving it a strong competitive edge and strategic importance, especially to the steel industry.
- Huge Coal Reserves: The company holds substantial coal resources (~7.9 billion tonnes) in prime coalfields (Jharia & Raniganj), supporting long-term production and revenue stability.
- Strong Parentage: Being a subsidiary of Coal India Ltd offers BCCL financial backing, access to technical expertise, better credibility, and industry relationships.
- Washery Capacity & Quality Output: BCCL has significant coal washery capacity, which improves the quality and value of its coal products — key for steel and industrial buyers.
- Robust IPO Demand: The IPO received strong investor interest, with high grey market premiums and oversubscription on Day 1, indicating positive market sentiment and potential listing gains
⚠️ IPO Weaknesses
- High Customer Concentration: A large share of revenue comes from a few major customers, meaning loss or payment delays from even one can hurt earnings.
- Geographic Concentration: Operations are concentrated in just two coalfields (Jharia & Raniganj), exposing the company to local regulatory, environmental, or natural risks.
- Contingent Liabilities: BCCL has substantial contingent liabilities (possible future obligations) that could affect its finances if realised.
- Dependence on Third-Party Contractors: Most coal extraction is done by contractors, leading to operational and cost quality risks.
- Energy Transition & Coal Demand Risk: Long-term shifts toward renewable energy and reduced thermal power reliance may weaken future coal demand.
Disclaimer:
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