The Bharat Coking Coal IPO remained in focus on Day 2 of bidding, backed by strong subscription numbers and a stable grey market premium (GMP). In the unofficial market, the IPO was trading at a premium of around ₹10.6 over the issue price, indicating positive listing expectations if broader market conditions remain supportive.
As per data available on the BSE website, the IPO was subscribed 8.09 times by 9:56 am on Day 2. Against 34.69 crore shares offered, bids were received for over 280.61 crore shares, reflecting strong investor interest across categories. Market experts say stable GMP levels usually indicate healthy demand rather than speculative hype, though it should not be taken as a guaranteed indicator of listing gains.
Brokerage firm Anand Rathi highlighted that Bharat Coking Coal Limited (BCCL) holds a dominant position in India’s coking coal segment, contributing nearly 59% of domestic production. The company owns large, long-life reserves mainly in Jharkhand and West Bengal, making it strategically important for India’s steel industry, where coking coal remains an essential raw material.
Financially, BCCL operates with zero long-term debt, shows steady profits, and benefits from the backing of Coal India Limited. At the upper price band, the IPO is valued at about 8.6 times FY25 earnings, which analysts consider fairly priced.
However, risks remain. The company’s performance depends on steel demand cycles, global coking coal prices, and government policy. Production disruptions, regulatory changes, and commodity price volatility could affect earnings in the short term.
For retail investors, experts believe the IPO is better suited for listing gains or medium-term holding rather than long-term aggressive investment at current valuations. While GMP and strong subscription numbers signal positive sentiment, investors are advised not to rely solely on grey market trends when making decisions.
