BCCL IPO draws strong early buzz as grey market premium hits Rs 39.5 over issue price

New Delhi: The initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a wholly-owned subsidiary of Coal India Limited, is witnessing strong early investor interest, with the grey market premium (GMP) reported at Rs 39.5 per share over the IPO price. The GMP comes even as the price band for the issue has been fixed at Rs 21 to Rs 23 per equity share, indicating expectations of a sharp listing premium for the country’s first mainboard IPO of 2026.

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BCCL filed its red herring prospectus on January 2, setting the stage for the public issue to open on January 9, with anchor investor bidding scheduled a day earlier on January 8.

Issue size and structure

The IPO is a 100 percent book-built offer for sale (OFS), with Coal India proposing to offload up to 46.57 crore equity shares of face value Rs 10 each. At the upper end of the price band, the issue is valued at around Rs 1,071.11 crore, making it one of the larger PSU-led disinvestment issues in recent years.

As the entire issue is structured as an OFS, BCCL will not receive any proceeds from the IPO. The funds raised will accrue directly to Coal India Limited, the promoter selling shareholder, as outlined in the offer document.

Subscription timeline and lot size

The public issue will remain open for subscription from January 9 to January 13, 2026. The basis of allotment is expected to be finalised on January 14, with tentative listing on BSE and NSE scheduled for January 15.

The minimum bid lot has been fixed at 600 equity shares, translating into an application size of Rs 13,800 per lot at the cut-off price. The offer also includes reservation portions for eligible employees and eligible shareholders of Coal India, in line with SEBI regulations.

Issue management and listing

IDBI Capital Markets & Securities Limited and ICICI Securities Limited are acting as the book running lead managers to the issue, while KFin Technologies Limited has been appointed as the registrar. The equity shares are proposed to be listed on both BSE and NSE, with NSE designated as the stock exchange for determining the basis of allotment.

This will be BCCL’s first exposure to public markets, with the company stating in its prospectus that there has been no prior trading market for its shares.

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