The initial public offering of Bharat Coking Coal Limited moved into Day 2 with momentum still firmly intact. Strong grey market signals, aggressive bidding across categories, and a fully subscribed book early in the process have put the PSU issue squarely in focus.
Investor chatter is loud. The numbers are louder.
Day 2 bidding shows no sign of fatigue
By the time the issue entered its second day, the tone was already set. On Day 1, the IPO was subscribed in minutes, eventually closing the session at 8.09 times overall demand. That early rush has carried forward, pushing cumulative subscription to 33.67 times by Day 2.
Retail participation has stayed brisk.
Institutional demand, especially from qualified institutional buyers, has been the real story here. Anchors had already shown confidence before the issue opened, with the company raising ₹273.1 crore from anchor investors ahead of the public offer.
That early vote of confidence mattered.
It gave the book instant credibility and set expectations high right from the opening bell.
And yes, the buzz hasn’t cooled.
Grey market premium points to a sharp listing day
The grey market has been unusually consistent for this issue. As of Tuesday morning, Bharat Coking Coal’s IPO GMP stood at ₹10.85.
That number implies a potential listing price of ₹33.85 against the upper issue price of ₹23.
Do the math and it comes out to roughly a 47% premium.
For IPO watchers, that’s a loud signal.
Of course, GMP is unofficial and sentiment-driven. It swings. Still, when the premium holds steady over multiple sessions, the market is clearly pricing in optimism.
A one-line takeaway?
The street expects fireworks on debut.
Price band, structure, and what investors are actually buying
The IPO has been priced in a band of ₹21 to ₹23 per share, with the final price expected to be fixed at the upper end given the demand profile.
This is a 100% offer for sale (OFS).
That means no fresh capital is flowing into the company. The selling shareholder here is Coal India Limited, which is diluting part of its stake.
Some investors pause at that.
Others see it differently. An OFS from a government-backed parent often signals confidence in valuations and market appetite, especially when pricing is not stretched.
Here’s a quick snapshot of the issue details:
| Particulars | Details |
|---|---|
| IPO Price Band | ₹21 – ₹23 per share |
| Issue Type | Offer for Sale |
| Anchor Book | ₹273.1 crore |
| Subscription (Day 2) | 33.67x |
| GMP (latest) | ₹10.85 |
| Expected Listing | Later this week |
Simple table. Clear picture.
Why the subscription numbers are turning heads
A 30x-plus subscription is not casual demand. It reflects layered interest from multiple investor classes.
A few drivers stand out, basically:
-
Strong PSU credentials and predictable business model
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Monopoly-style position in coking coal supply for steelmakers
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Attractive valuation relative to listed peers
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Short-term listing gain expectations driven by GMP
That combination doesn’t show up every week.
Also, the timing has helped. Broader market sentiment around PSU listings has improved, and recent debuts have rewarded investors who came in early.
People remember that.
Where Bharat Coking Coal fits in India’s resource story
Bharat Coking Coal is not some new-age story. It’s old-school, asset-heavy, and deeply tied to India’s industrial backbone.
The company plays a key role in supplying coking coal to steel producers, a segment that remains critical as infrastructure spending stays elevated.
Steel demand hasn’t fallen off a cliff. That matters.
Being part of the Coal India ecosystem gives BCCL operational backing, scale, and long-term visibility. Investors looking for stability often like that setup, even if growth isn’t flashy.
There’s comfort in predictability, you know.
And in a volatile market, that comfort has value.
Should retail investors chase this issue?
This is where things get tricky.
From a pure listing-day perspective, the signals look strong. High oversubscription, steady GMP, and anchor participation all point in the same direction.
Short-term players are clearly interested.
For longer-term investors, the decision is more nuanced. The business is cyclical. Coal prices move. Policy matters. And since this is an OFS, there’s no immediate balance-sheet boost.
Still, valuation comfort and PSU pedigree soften those concerns for many.
Some investors are applying with listing gains in mind. Others are applying with measured expectations, aware that post-listing moves can surprise both ways.
Markets have a habit of doing that.
What to watch as the IPO closes
The issue closes on January 13, and attention will now shift to final subscription numbers, allotment timelines, and listing day cues.
A few things traders will be watching closely:
Retail oversubscription trends into the final hours.
QIB demand stability.
Any late movement in GMP as the book closes.
And then, of course, the listing on Bombay Stock Exchange and National Stock Exchange of India later this week.
