New Delhi: The Initial Public Offering (IPO) of Bharat Coking Coal (BCCL) received an unprecedented response, breaking multiple records in investor participation. On Tuesday, the last day for bidding, the IPO was subscribed 147 times, making it one of the most oversubscribed issues in recent years. A total of 90.31 lakh applications were received, surpassing the previous record of 82.65 lakh applications for Vaar Energy’s IPO in 2024.
Investor Participation and Bidding Trends
Although the IPO size was modest at ₹1,071 crore, investors placed bids totaling over ₹1.1 lakh crore. According to stock exchange data, investors purchased 50,93,16,75,600 shares at the upper price band of ₹23 per share, taking the total bid value to approximately ₹1.17 lakh crore. Despite volatility in the stock market, participation from all investor categories was strong.
- Qualified Institutional Buyers (QIBs): 311 times subscribed
- Non-Institutional Investors (NIIs): 258 times subscribed
- Retail Investors: 49 times subscribed
- Employee Reserved Shares: 5 times subscribed
- Existing Shareholders: 87 times subscribed
Why Investors Are Excited
Experts believe the strong response reflects investors’ confidence in BCCL’s monopoly position and the sustained long-term demand for high-quality coking coal, which is essential for steel production. Research analyst Gaurav Garg of Lemon Markets Desk noted that high oversubscription in the non-institutional segment indicates investors found the valuation attractive and expect healthy listing gains.
About Bharat Coking Coal
BCCL is India’s largest producer of coking coal and the only domestic source of premium quality prime coking coal, critical for steel manufacturing. According to company filings, as of April 2024, BCCL had an estimated reserve of 7.91 billion tons, representing 21.5% of India’s total coking coal resources. In the grey market, BCCL shares are trading at a premium of 57.82%, around ₹13.3 per share, reflecting strong investor demand ahead of listing.
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