Bharat Coking Coal, a wholly-owned subsidiary of Coal India Ltd, on Thursday raised ₹273.10 crore from anchor investors ahead of the issue opening on Friday. The coal major allotted 1.187 crore shares to anchor investors at ₹23 a share.
The IPO is entirely an offer-for-sale of up to 46.57 crore shares by Coal India. The issue size is ₹1071.1 crore at the upper end of the price band. Some of the marquee institutions which participated in the anchor portions included Life Insurance Corporation, Societe Generale, Copthall Mauritius Investment Ltd, Citrine Fund, M7 Global Fund PCC – ASAS Global Opportunities Fund, Maybank Securities and Rajasthan Global Securities Private Ltd.
IDBI Capital Markets & Securities and ICICI Securities are the book-running lead manager; and KFin Technologies Limited is the registrar of the offer.
Brokerages are, citing the company’s dominant position in India’s coking coal segment, strong reserve base, and long-term demand visibility driven by steel sector growth and import substitution policies.
Analysts highlight BCCL’s leadership in domestic coking coal production, ongoing washery capacity expansion, and high entry barriers supported by Coal India’s backing. While some brokerages note that valuations at the upper price band appear fairly priced and the issue is a 100 per cent OFS, most believe these concerns are offset by the company’s strategic importance, steady cash flows, and recovery prospects, leading to a broad recommendation to subscribe, with expectations of healthy listing gains and long-term value creation.