Bharat Coking Coal IPO opens January 9: Price band, issue size, GMP and key details

Mumbai | January 6, 2026

Bharat Coking Coal Limited (BCCL), a wholly owned subsidiary of Coal India, has set a price band of ₹21–23 per share for its upcoming initial public offering.

The IPO will open for subscription from January 9 to January 13, with anchor investor bidding scheduled for January 8.

At the upper end of the price band, the company is valued at approximately ₹10,700 crore.

The issue, which is entirely an offer for sale (OFS), marks the first public offering of calendar year 2026 and is expected to set the tone for PSU divestments in the new year.

IPO structure and key details

According to the RHP, the IPO comprises an offer for sale of 46.57 crore equity shares by Coal India, aggregating to ₹1,071.11 crore at the upper end of the price band.

There is no fresh issue component in the IPO. The issue has been structured with 50% of the shares reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. Additionally, 10% of the issue has been earmarked for existing shareholders of Coal India who held shares on or before January 1, 2026.

BCCL is tentatively scheduled to list on the stock exchanges on January 16, with allotment expected on January 14.

Bharat Coking Coal IPO: Use of proceeds

The IPO is entirely an offer for sale, and Bharat Coking Coal Limited will not receive any proceeds from the issue. The entire proceeds will accrue to the promoter selling shareholder, Coal India Limited, net of issue-related expenses and taxes.

GMP signals strong listing interest

The grey market premium for the Bharat Coking Coal IPO continues to indicate strong listing gains.

Data from sources showed a GMP of ₹13.5 per share, implying potential listing gains of nearly 58%.

Note: Grey market premiums are unofficial and should be viewed only as an indicator of market sentiment.

About the company

BCCL is India’s largest producer of coking coal, accounting for nearly 58.5% of domestic coking coal production in FY25, with total output of 38.9 million metric tonnes (MMT).

The company operates 34 mines across Jharkhand and West Bengal, including 26 opencast, four underground and four mixed mines, with opencast operations contributing about 97% of total production.

In FY25, BCCL reported total coal production of 40.5 MMT, supported by an operational coal washery capacity of 13.6 million tonnes per annum (MTPA).

Expansion plans and growth levers

The company plans to invest nearly ₹10,000 crore by FY30 to expand washery capacity from 13.6 MTPA to 26 MTPA, funded through internal accruals.

BCCL is also commissioning three new washeries with an additional 7 MTPA capacity, aimed at improving coal quality and utilisation of high-ash reserves.

From a demand perspective, India’s coking coal consumption stood at 67 MMT in FY25 and is projected to rise to 138 MMT by FY35, positioning BCCL as a key beneficiary of rising steel production and import substitution efforts.

Financial snapshot & Valuation

For the year ended March 2025, BCCL reported total income of ₹14,402 crore and EBITDA of ₹2,356 crore, translating into an EBITDA margin of around 16%.
Profit after tax stood at ₹1,240 crore.

At the upper end of the price band, the IPO is valued at a FY25 P/E multiple of 8.6x and an EV/EBITDA multiple of 4.1x.

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