Bharat Coking Coal is set to open on January 9, 2026. SBI Securities has recommended investors subscribe to the upcoming initial public offering of Bharat Coking Coal Ltd (BCCL), citing the company’s dominant position in the domestic coking coal market, strong reserve base and reasonable valuation at the offered price.
According to the brokerage, BCCL is India’s largest producer of coking coal, accounting for about 58.5 per cent of total domestic production in FY25. With estimated reserves of nearly 7.91 billion tonnes and operations spread across 34 mines, the company stands out as one of the largest coking coal reserve holders in the country.
At the upper end of the price band of ₹23, SBI Securities noted that the issue is valued at an EV/EBITDA multiple of 6.4 times based on post-issue capital, which it considers attractive in light of the company’s scale and growth prospects.
The GMP suggests 50 per cent premium listing.
IPO details
Bharat Coking Coal, a wholly-owned subsidiary of Coal India, is set to open its ₹1,071 crore IPO on January 9, with the issue closing on January 13. The IPO has been priced in the range of ₹21 to ₹23 per equity share, and investors can apply for a minimum of 600 shares and in multiples thereafter.
The entire issue is an offer for sale by Coal India, . The IPO also includes a dedicated shareholder quota worth ₹107 crore for eligible Coal India shareholders, with eligibility linked to holding Coal India shares on or before January 1.
The IPO is being managed by IDBI Capital Markets & Securities and ICICI Securities as book-running lead managers, while KFin Technologies is acting as the registrar to the issue.
Given the company’s leadership in coking coal production, expansion plans and favourable valuation, SBI Securities believes the Bharat Coking Coal IPO offers a compelling investment opportunity and has advised investors to subscribe at the cut-off price.