New Delhi. India's coal sector giant Bharat Cooking Coal IPO (BCCL IPO) is bringing its first mainboard IPO of the year 2026. This three-day public issue will open on Friday, January 9 and close on Tuesday, January 13. BCCL is a company associated with Coal India. Before the IPO, the company has raised Rs 273.13 crore from anchor investors on January 8. In this, LIC emerged as the largest anchor investor, buying 3.39 crore equity shares worth Rs 78 crore. Whereas Nippon India Mutual Fund and Bandhan Mutual Fund have bought 3.26 crore shares worth Rs 75 crore each.
Invest money on BCCL IPO or not?
SBI Securities has advised investors to subscribe to this issue at the cut-off price. According to the brokerage, the issue is valued at 6.4x EV/EBITDA on a post-issue capital basis at the upper price band of Rs 23.
The brokerage also pointed out that BCCL is the largest producer of coking coal in the country, accounting for 58.5% of domestic production in FY25. The company has estimated coal reserves of 7.91 billion tonnes and 34 operational mines.
ICICI Direct has kept the IPO 'unrated'. According to the brokerage, the company's sales and profits have grown at 5% and 37% CAGR during FY23–FY25, respectively. EBITDA margin stood at 12.7% and ROCE at 18.2% in FY25. Anand Rathi advised to subscribe from the perspective of listing gains. The brokerage says valuations at 8.64x P/E based on FY25 earnings are reasonable and the company's strong track record is already largely factored into it.
How much is BCCL IPO GMP?
The shares of the cooking coal IPO are trading at a premium of around 50% in the gray market, giving hope of a strong listing. However, market experts say that gray market trends are volatile and only reflect the untapped market sentiment.
Issue structure and details
This IPO is completely an Offer for Sale (OFS), under which Coal India will sell 10% of its stake. Through this issue, which comes in the price band of Rs 21 to 23, the company will raise Rs 1,071 crore by offering 46.57 crore shares. The minimum lot size for retail investors has been kept at 600 shares, for which an investment of Rs 13,800 will have to be made at the upper price band.
Additionally, shares worth Rs 107 crore have been reserved for eligible Coal India shareholders. Investors holding Coal India shares till January 1, 2026 can apply in this quota. Eligible employees will also be given a discount of Re 1 per share.
At the upper price band of Rs 23, the post-issue market cap of BCCL is estimated to be around Rs 10,711 crore. Even after listing, Coal India's stake will remain 90%, which is much more than the minimum public shareholding rule.
Risks to watch out for
The brokerage house also pointed out some risks, including depletion of coal reserves over the long term, dependence of more than 80% of revenues from top 10 customers and impact on coal demand in future due to increased use of renewable energy.
When will BCCL IPO be listed?
BCCL is the country's largest coking coal producer and its share in domestic production stood at about 58.5% in FY25. The company runs its operations in Jharia Coalfield in Jharkhand and Raniganj Coalfield in West Bengal. The book running lead managers of the issue are IDBI Capital and ICICI Securities. The allotment is expected to be finalized on January 14, while the listing of shares is likely to take place on Friday, January 16.
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