Bharat Coking Coal IPO fully subscribed within an hour
What's the story
Bharat Coking Coal's (BCCL) initial public offering (IPO) has been fully subscribed within an hour of opening on Friday. The strong demand was mainly led by retail investors and non-institutional investors, despite institutional participation being muted at the start. By 10:33am, BCCL's IPO was subscribed 1.3 times overall with the non-institutional investors' portion subscribed 2.25 times and retail category booked 1.76 times. The issue will remain open till January 13.
Subscription details
Shareholder quota sees healthy demand
The shareholder quota for BCCL's IPO was also in demand, being subscribed 1.55 times. However, the qualified institutional buyers' segment was only subscribed 0.01 times (about 1%). The ₹1,071 crore IPO includes an offer-for-sale of 46.57 crore equity shares by promoter Coal India at a price band of ₹21-23 per share.
Issue structure
Bharat Coking Coal's IPO structure and anchor demand
The IPO is entirely an offer for sale, with parent Coal India divesting a 10% stake. Ahead of the issue opening, BCCL raised ₹273.13 crore from anchor investors on January 8. Life Insurance Corporation of India was the largest anchor investor, acquiring 3.39 crore equity shares worth ₹78 crore at the upper end of the price band.
Market impact
Bharat Coking Coal's market capitalization and public shareholding
At the upper end of the price band, BCCL will have a post-issue market capitalization of around ₹10,711 crore. After listing, Coal India's stake will fall to 90%, still well above the minimum public shareholding requirement. Ahead of the IPO, BCCL shares are commanding a gray market premium, with reports indicating a range from ₹9.25 to ₹16.25 per share, suggesting strong listing expectations.