Bharat Coking Coal’s initial public offering (IPO) continued to attract strong demand on its second day of bidding, with subscription levels crossing 22 times across investor categories. The robust response reflects strong market interest in the coal sector PSU, backed by its parent company, Coal India.
According to stock exchange data, the issue saw heavy participation from retail, non-institutional, and qualified institutional buyers. Analysts attributed the strong demand to the company’s established operations, steady cash flows, and reasonable valuation at the offered price band.
The IPO is entirely an offer for sale (OFS) comprising 46.57 crore equity shares by promoter Coal India. Through this divestment, the government-owned coal major aims to raise approximately Rs 1,071.11 crore. Since the issue does not include a fresh equity component, the proceeds will go to the selling shareholder and not to the company.
Bharat Coking Coal has fixed the price band at Rs 21 to Rs 23 per equity share. At the upper end of the band, the company is valued attractively compared to listed peers, which has further supported investor interest. The minimum lot size and investment amount are structured to encourage retail participation.
The grey market premium (GMP), an unofficial indicator of listing sentiment, rose to around 44 percent on Day 2. Market participants said the rise in GMP reflects optimism about potential listing gains, although they cautioned that GMP is speculative in nature and not an assured indicator of actual market performance.
The IPO opened for subscription on January 9 and will close on January 13. The allotment is expected to be finalised shortly thereafter, with listing planned on the BSE and NSE, subject to regulatory approvals.
Industry experts note that Bharat Coking Coal benefits from its strategic importance in supplying coking coal to the steel sector, which remains a key driver of demand. The company’s operational scale, long-standing customer relationships, and backing of Coal India add to its investment appeal.
However, analysts also advise investors to consider sector-specific risks, including regulatory changes, environmental norms, and dependence on industrial demand. Long-term investors are encouraged to assess their risk appetite and investment horizon before subscribing.
Overall, the strong response on Day 2 highlights continued investor confidence in public sector offerings and government divestment initiatives, particularly when pricing and fundamentals align favourably.
