The initial public offering (IPO) of concluded with an overwhelming response, subscribed 146.87 times by the close of bidding on Tuesday. The ₹1,071.11-crore issue drew bids worth ₹1.17 lakh crore), receiving bids for 5,095.56 crore shares against the offered 34.69 crore shares, marking a dramatic surge from 17.19 times subscription on Day 3.
The Qualified Institutional Buyers category led the charge with 310.81 times subscription, a stark reversal from the muted 0.38 times on Day 2. Domestic financial institutions invested heavily with bids for over 1,009 crore shares, while foreign institutional investors bid for 743.59 crore shares. The non-institutional investors’ portion was subscribed 258.16 times, with the high networth individual segment (above ₹10 lakh) seeing 275.64 times subscription.
The retail investors’ portion closed at 49.33 times subscription, while the shareholder (of Coal India) reservation portion saw 87.29 times demand. The employee reserved category was subscribed 5.18 times.
Brokers bullish
Strong demand for coking coal from steelmakers lifted appetite for the shares of India’s top coking coal miner. SBI Securities had assigned a ‘Subscribe’ rating, highlighting BCCL’s position as the country’s largest coking coal producer accounting for 58.5 per cent of domestic production in FY25. The brokerage noted the company’s estimated reserves of 7.91 billion tonnes and operational washery capacity of 13.65 million tonnes per annum. At the upper price band of ₹23, the issue was valued at an EV/EBITDA multiple of 6.4 times.
Anand Rathi Research also recommended subscribing for listing gains, valuing the company at 8.64 times FY25 earnings.
The ₹1,071-crore offer-for-sale by Coal India raised ₹273.1 crore from anchor investors, including Life Insurance Corporation and Societe Generale.