Bharat Coking Coal IPO: Low price band, monopoly business, shareholder quota among key factors driving investor demand

Bharat Coking Coal IPO details

On Day 2, Bharat Coking Coal IPO continues to see a strong response with the retail investors quota subscribed xx times. Overall, the IPO is booked nearly 30 times till 3:30 pm on Day 2. Despite being a complete offer-for-sale, Bharat Coking Coal IPO continue to receive rousing response from investors and could become one of the most subscribed IPO of 2026. Wondering why BCCL IPO is witnessing a massive response?

Attractive IPO price band

Bharat Coking Coal IPO price band of ₹21 to ₹23 per share appears quite attractive, making the issue accessible and affordable even to the smallest retail investors. In addition, the company is a public sector undertaking (PSU) backed by its parent firm, Coal India. In Indian markets, a large chunk of investors are often drawn towards PSU companies for their stability, government backing and regular dividend payouts.

For instance, PSU firm Indian Renewable Energy Development Agency (IREDA) came out with its issue in November 2023 with a price band of ₹30 to ₹32. The IPO was subscribed nearly 39 times, while the IREDA stock listed around ₹50 per share, a premium of 56% and currently trades around ₹138 apiece.

Similarly, PSUs like Coal India and IREDA have nearly 28 lakh retail shareholders, while State Bank of India (SBI) has around 37 lakh public shareholders despite being majority-owned by the Government of India. In comparison, private banks such as ICICI Bank and HDFC Bank, which are fully publicly owned, have about 21 lakh and 36 lakh public shareholders, respectively.

Besides this, some of the recent IPOs like Belrise Industries, Groww, and Meesho, which were priced lower, saw huge subscriptions in the range of 18 to 82 times.

Bharat Coking Coal IPO shareholder quota

Bharat Coking Coal, which is a wholly owned subsidiary of Coal India, has reserved shares worth ₹107.1 crore for Coal India shareholders (10% of the issue size). However, under the shareholders' quota, there will be no further discount for the IPO applicants.

As per the BCCL RHP, investors who held Coal India shares on or before January 1, 2026, will be eligible to apply under the shareholder quota for the BCCL IPO. The BCCL shareholder quota is only available for Individual investors and HUF investors.

BCCL IPO GMP

BCCL IPO grey market premium (GMP) is currently in the range of 45-46%. Strong early demand in the unofficial grey market indicates that the company’s IPO could see a huge response and investor interest amid attractive GMP.

BCCL monopoly business model

Over the years, Bharat Coking Coal has created a monopoly status in the business segment it operates. The company produces various grades of coking coal, which have high carbon content and are different from thermal coal used in power generation. As a result, coking coal plays a key role in India’s steel-making value chain. The company’s cooking coal is used in a steel blast furnace to turn iron ore into steel. This high-grade steel is required for every infrastructure development and construction activity.

BCCL is one of the largest domestic producers of coking coal, contributing 58.50% to India's total coking coal production in FY25, through its 34 mines, including 26 opencast mines, 4 underground mines, and 4 mixed mines.

Consistent revenue and net profit growth

Bharat Coking Coal revenue grew from ₹12,624 crore in FY23 to ₹14,245 crore in FY24, a rise of about 12.8%, but declined marginally by 3% to ₹13,802 crore in FY25. Meanwhile, its net profit jumped sharply by 36.5% CAGR between FY23 to FY24, while EBITDA surged at a CAGR of 62.5% during the same period. Overall, BCCL has a stable cashflow and has also started paying dividends recently. Also, the company has zero debt, which means all the operating profits are likely to be invested in the business or paid as dividends

Overall, BCCL’s monopoly business, consistent profitability and strong backing are making its IPO very attractive for the investors. But on the other hand, there are a few risks also associated with the IPO, like the company being dependent on a few large companies for its revenue; the top 10 customers contributed 83.89% of revenue in the six months ending September 30, 2025, and 88.88% in FY25.

The company is exposed to the cyclic nature of the commodity and global commodity prices. Also, the company has environmental and safety hazards risk tied to its mining operations.