Bharat Coking Coal IPO: Should You Apply?

India's largest producer of coking coal, Bharat Coking Coal Limited's ₹1,071 crore IPO is open for subscription at a time when PSU stocks are back in focus and steel demand is on the rise. Since its nationalisation in 1972, BCCL has captured 58% of the coking coal production in India, and is a subsidiary of Coal India. 

At this point, its important to understand, what really is coking coal and how is it different from coal?  Coal and coking coal may sound similar, but they’re used for completely different things. The coal we usually hear about is burned in power plants to generate electricity. The heat from burning it spins turbines, and that’s what keeps our lights on, phones charged, and trains running. 

On the other hand, coking coal, though, isn’t about electricity at all. It’s meant for steelmaking. When it’s heated in a controlled way, it turns into coke — a hard, carbon-rich material that helps melt iron and make steel. This makes coking coal the backbone of India's infrastructure. 
 

Let’s break it down.

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Bharat Coking Coal Limited started operations in 1972. Coal India owns the company, and the Ministry of Coal controls it.

You should know this first.  BCCL is not a typical PSU.

It supplies nearly 58.5% of India’s coking coal, which steel producers need to operate blast furnaces. India still imports a large portion of coking coal, so domestic supply matters.

Key facts you should note

• Operates 34 mines across Jharkhand and West Bengal
• Controls 7,910 million tonnes of coking coal reserves
• Supplies major steel and power companies
• Monetizes idle assets through MDO and WDO models
• Tests solar projects to reduce costs and add income
   

BCCL sits at the center of India’s steel supply chain. That gives the business long-term relevance.

Here are the IPO basics you need.
 

• IPO dates: 9-13 Jan 2026

• Price band: ₹21 to ₹23 per share

• Issue size: ₹1,071.11 crore

• Lot size: 600 shares

• Minimum investment: ₹13,800

• Listing date: 16 January 2026

• Exchanges: BSE and NSE
   

Employees get a ₹1 discount per share. 

This IPO is a 100% offer for sale (OFS). This means that all the money raised through the IPO will go its existing shareholders, and yes we mean the Government of India through Coal India, its parent company. 

Given that the proceeds from IPO will not go into the company's business, your decision to invest should focus on valuation, business stability, and long-term demand.

Even though India is the second largest producer of coking coal in the world, with 14% market share compared to China's 56%, India still imports 90% of its coal requirements. This is because we do not have enough coal that is required to make steel even today.

In 2024 and 2025, government data showed strong growth in: 

• Infrastructure projects
• Railways and metro expansion
• Defence manufacturing
• Housing and urban development 

Steel needs coking coal. No commercial replacement exists today. This supports long-term demand for BCCL’s output. India’s steel demand keeps rising. 

Bharat Coking Coal IPO subscribed 15.86 times on Day 2. BCCL IPO's grey market premium (GMP) stands at ₹10 as per investorgain.com (as of 12 Jan 12:30pm). With an issue price of ₹23, the estimated listing price comes to ₹33. That reflects a potential 43% listing premium.

Recent GMP movement shows:

• Highest GMP: ₹16.25
• Lowest GMP: ₹9.25

Demand remains steady, but momentum has slowed. You should treat GMP as a sentiment indicator, nothing more. It changes fast and stays unofficial.  

Disclaimer: Grey Market Premium (GMP) is not regulated or recommended by the stock exchanges or SEBI. ArihantPlus does not endorse or facilitate trading in the grey market. Investors are advised to conduct their own research or consult an expert before making any investment decisions.

BCCL reported strong profits in recent years.

Financials in ₹ crore 
 

• FY23 revenue: 13,018
• FY24 revenue: 14,652
• FY25 revenue: 14,401
• FY25 PAT: ₹1,240 crore
• ROCE: 30.13%
• ROE: 20.83% 

Margins dipped slightly, but cash flows stayed strong. 
Post-IPO valuation sits near 43x earnings, which looks expensive for a PSU. 

• Market leader in coking coal
• Backed by Coal India and Government of India
• Strategic mines near steel hubs
• Long-term supply contracts
• Strong balance sheet and cash flows 

• No fresh capital for growth
• ESG pressure on coal businesses
• Earnings depend on commodity prices
• High post-IPO valuation
• Strong policy and regulatory control 

BCCL is India's largest source of coking coal at a time when the country is in the desperate need for it. BCCL’s growth is expected to stay steady, mainly because steel companies will continue to need coking coal and BCCL has strong coal reserves. The company is also reorganising its mines, expanding coal washing capacity, and using asset-light models like WDO and MDO to improve efficiency and keep volumes stable.
 

With Coal India backing it, BCCL is in a good position to maintain steady production and cash flows, and remain a key supplier of coking coal in India. It is a zero debt profit-making company. However, its profit is declining, the company. At the upper price of ₹23, the IPO is valued at about 4.7 times FY25 EBITDA.

This IPO offers a unique opportunity to invest in a sector whose demand is not going away anytime soon. For long-term investors, this can be a good investment opportunity but ultimately your investment decision should entirely depend upon your risk tolerance, and how comfortable you are rising the coal and steel sector story. 

What is the price band for Bharat Coking Coal IPO? 

The price band for the Bharat Coking Coal IPO is ₹21 to ₹23.

Who can apply for Bharat Coking Coal Ltd IPO under the shareholder quota? 

If you owned Coal India shares on or before January 1, 2026, you’re eligible to apply for the BCCL IPO under the shareholder quota. This category is open only to individual investors and HUFs. Even one Coal India share is enough to qualify. The maximum amount you can apply for under this quota is ₹2 lakh.

How much times Bharat Coking Coal IPO subscribed? 

Bharat Coking Coal IPO subscribed 25.33 times. The public issue subscribed 22x in the retail category, 0.57x in QIB, and 68.89x in the NII category as of January 12, 2026 2PM (Day 2).
 

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