Bharat Coking Coal IPO Fully Subscribed Within 25 Minutes on Day 1: Retail and NIIs Lead the Charge

The Bharat Coking Coal IPO witnessed an extraordinary response from investors, being fully subscribed in just 25 minutes after opening on Friday, January 9. Strong interest from retail and non-institutional investors drove early demand, while institutional participation remained muted in the initial hours.

Market Performance: Quick Take on Day 1 Subscription

By 10:33 am, the subscription numbers reflected robust participation across categories:

• Overall subscription: 1.3 times
• Non-Institutional Investors (NII): 2.25 times
• Retail Individual Investors (RII): 1.76 times
• Shareholder quota: 1.55 times
• Qualified Institutional Buyers (QIB): 0.01 times

The pattern shows the typical trend where institutional bids gain momentum closer to the closing stage of the IPO, while retail and NII investors dominate early demand.

Company Details and IPO Overview

Bharat Coking Coal Ltd. (BCCL) has launched a Rs 1,071.11-crore IPO, entirely structured as an Offer for Sale (OFS). The details are as follows:

• Total shares offered: 46.57 crore equity shares
• Price band: Rs 21–23 per share
• Proceeds: Entirely to promoter Coal India, BCCL will not receive any funds from this IPO

Being a pure OFS, the IPO does not infuse capital into the company but allows the promoter to divest part of its stake to public investors.

Bharat Coking Coal IPO Anchor Book Highlights

Ahead of the public subscription, BCCL raised Rs 273.13 crore on January 8 by allotting 11.87 crore shares to 15 anchor investors at Rs 23 per share. Key allocations included:

• Life Insurance Corporation of India (LIC): 3.39 crore shares
• Nippon Life India Mutual Fund & Bandhan Mutual Fund: 3.26 crore shares each
• Other investors: Societe Generale, UTI Mutual Fund, Citrine Fund, among others

The anchor allotment ensured a solid base before the IPO opened to the wider public.

IPO Structure and Timeline

The Bharat Coking Coal IPO opened for subscription on January 9 and is scheduled to close on January 13. Key dates in the IPO process are:

• Allotment finalization: January 14
• Refunds & share credit: January 15
• Tentative listing on BSE & NSE: January 16

Quota allocation:

• QIBs: 50% of net issue
• NIIs: 15%
• Retail Investors: 35%

For retail investors, each application requires a minimum lot of 600 shares, which comes to an investment of Rs 13,800 if priced at the upper end of the band, Rs 23 per share.

Summary: Retail and NII Demand Steer Early Success

The early subscription numbers signal strong investor confidence, particularly among retail and non-institutional investors. The subdued initial QIB response aligns with the common trend of institutional bids consolidating closer to the IPO closure.

BCCL’s Bharat Coking Coal IPO demonstrates one of the fastest subscriptions in recent times, underlining the strong appetite for public offerings from well-established coal companies.

For investors tracking IPO trends and early-day subscription patterns, BCCL’s debut sets an important benchmark in market sentiment and investor behavior.

Source: Moneycontrol