MUMBAI: Public sector Bharat Coking Coal, the largest miner of coking coal and an arm of national coal miner Coal India, had fixed the price-band for its Rs 1,071-crore initial share sale at Rs 21-23, which will open Friday, making it the maiden mainboard issue in the new year. At the higher end of the price-band, the company is valued at over Rs 10,700 crore.
Meanwhile, BCCL’s grey market premium jumped after announcement of price band, issue opening date. According to market observers, shares of the company are available at a premium of Rs 16.50 in the grey market today, according to the data available on Investorgain. That means the estimated listing price of BCCL is likely to be Rs 39.5, which is 71.74% higher than the IPO price of Rs 23, which is the upper end of the price-band.
The lowest GMP is Rs 13, while the highest GMP is Rs 16.50, according to Investorgain. The IPO, which is a fully offer for sale by the parent Coal India, opens on January 9 and closes on 13. The shares will be listed on January 16.The offering will be keenly tracked by the Dalal Street as an early gauge of investor appetite for public sector undertakings in the new year.
Coal India will sell 46.57 crore shares aggregating to Rs 1,071.11 crore at the higher end of the price band, the management told reporters here Monday. The IPO is part of the government divestment push in the coal sector, aimed at unlocking value in Coal India's three subsidiaries and enhancing transparency through market discipline.
Half of the issue is reserved for qualified institutional buyers, 35% for non-institutional investors and the remaining 15% for retail investors. There is also separate quotas for employees and Coal India shareholders up to 4.5 crore shares. Investors can bid for the IPO in lots of 600 shares and in multiples thereafter. Last year, Central Mine Planning and Design Institute (CMPDIL), another Coal India arm, had also filed for IPO for an OFS route.
While BCCL is a coal-producing entity, CMPDIL serves as Coal India's technical and planning arm. BBCL was the largest coking coal producer in the country in fiscal 2025 in terms of coking coal production, according to a Crisil report. BCCL’s production stood at 15.75 million tonne in the six-month to September 2025, compared to 19.09 million tonne in the year-ago period and the management attributed to the excessively high rainfalls—the highest in the past 50 years—and the resultant flooding of the mines.
Since the monsoons ebbed the production has recouped and the company is hopeful of bettering the last year’s production by March, the chairman and managing director Manoj Kumar Agarwal told TNIE here.The company operates a network of 34 operational mines, including four underground mines, 26 opencast mines, and four mixed mines as of September 2025.
BCCL's issue comes against the backdrop of a blockbuster year for the primary market. In 2025, companies raised a record nearly Rs 1.88 trillion through 104 IPOs, buoyed by strong domestic liquidity, resilient investor sentiment and a supportive macroeconomic environment. This surpassed the Rs 1.6 trillion mobilised by 90 firms in 2024 and the Rs 49,436 crore raised by 57 companies in 2023.BCCL is engaged in the production of various grades of raw coking and non-coking coal, washed coal, and related by-products, catering primarily to the steel, power, and cement sectors. As per the red herring prospectus, BCCL was the largest producer of coking coal in FY25, accounting for 58.50% of the country’s total domestic coking coal output during the year.