Bharat Coking Coal (BCCL) kicked off its IPO on Friday, January 9, with a strong start, drawing immediate attention from investors. The first day of bidding reflected strong investor interest, with the issue already subscribed over 2 times by late morning, highlighting robust participation from retail and non-institutional segments.
The IPO opened on a high note, signaling solid confidence among investors in the state-owned coal subsidiary. Market watchers observed that retail enthusiasm and non-institutional bids drove the early momentum.
Market Performance on Day 1
By 11:03 am, the IPO was subscribed 2.12 times overall. A closer look at segment-wise subscriptions shows the depth of investor interest:
- Retail Individual Investors (RII): 2.92 times
- Non-Institutional Investors (NII): 3.38 times
- Bids in the Rs 2–10 lakh category: 4.65 times
- Bids above Rs 10 lakh: 2.74 times
- Shareholder Quota: 2.68 times
- Qualified Institutional Buyers (QIB): 0.01 times
The pattern reflects typical institutional behavior, with QIB subscriptions often picking up closer to the closing of the issue.
Company Details and IPO Structure
Bharat Coking Coal’s IPO is structured as a pure offer for sale (OFS), with the entire Rs 1,071.11-crore issue being sold by the promoter, Coal India Ltd.
- Total shares offered: 46.57 crore equity shares
- Price band: Rs 21–23 per share
- Proceeds from IPO: Entirely to the selling shareholder; BCCL receives no funds
Before opening for the public, the company raised Rs 273.13 crore from anchor investors on January 8 by allotting 11.87 crore shares at Rs 23 per share. Key participants included Life Insurance Corporation of India, Nippon Life India Mutual Fund, and Bandhan Mutual Fund.
Strong Public Response
The IPO received immediate attention from investors, with full subscription achieved within about 25 minutes of opening. The early surge was largely driven by retail and non-institutional investors, reflecting widespread market enthusiasm.
Market observers see this strong response as a signal of confidence in BCCL’s listing.
Summary
Bharat Coking Coal’s IPO has marked a promising start, driven by substantial retail and NII demand. With subscriptions exceeding two times on day one and anchor investors already onboard, the IPO is set for a smooth continuation until its scheduled closing on January 13.
- Allotment date: January 14 (tentative)
- Listing date on BSE & NSE: January 16 (tentative)
- Book running lead managers: IDBI Capital Markets Services, ICICI Securities
- Registrar: KFin Technologies
The strong initial traction on day one reflects not only the market’s interest in state-owned PSU offerings but also the appeal of Bharat Coking Coal as a strategic value unlock for Coal India Ltd.
Source: Moneycontrol
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