After the blockbuster success of Ranveer Singh’s film Dhurandhar in 2025, a similar kind of excitement has been witnessed in the financial markets this year. A government-owned heavyweight has entered the market and created a stir right from day one. We’re talking about Bharat Coking Coal, whose IPO received an overwhelming response from investors within minutes of opening.

The ₹1,071 crore IPO of Bharat Coking Coal opened on Friday and was fully subscribed within just 30 minutes. By 10:30 am, the issue was subscribed 1.12 times, with bids for around 389 million shares against 346.9 million shares on offer.

Interest was particularly strong among non-institutional investors (HNIs) and retail investors.

• HNI category was subscribed 1.99 times

• Retail investors subscribed 1.5 times

• Shareholder quota was filled 1.29 times

• Qualified Institutional Buyers (QIBs) had subscribed only 0.01 times at that point

The IPO has also generated excitement in the grey market, where it is trading at a premium of nearly 50% over the issue price. This has raised expectations of healthy listing gains. However, experts caution that grey market premiums reflect short-term sentiment and can change quickly with market conditions.

• Issue size: ₹1,071 crore

• Type: Entirely Offer for Sale (OFS) by Coal India

• Price band: ₹21–₹23 per share

• Face value: ₹10

• Minimum lot size: 600 shares

• Issue closes: January 13

• Proposed listing: NSE and BSE

Since this is a complete OFS, the company will not receive fresh funds. Coal India’s stake will reduce to about 90% post-listing.

Bharat Coking Coal is India’s largest producer of coking coal, a critical raw material for steel manufacturing. As of April 2024, the company held reserves of about 7.91 billion tonnes of coking coal, accounting for nearly 21.5% of India’s total coking coal resources.

In FY25, the company contributed roughly 58.5% of India’s domestic coking coal production, underlining its strategic importance to the steel sector.

The company operates 34 mines across the Jharia coalfields in Jharkhand and the Raniganj coalfields in West Bengal. Its proximity to major steel plants and established logistics network ensures steady demand. Investments in coal washeries further support the supply of higher-quality coking coal.

As a wholly owned subsidiary of Coal India, the company benefits from strong technical expertise, financial backing, and large-scale operations.

At the upper end of the price band, Bharat Coking Coal is valued at around 8.6 times its FY25 earnings. In FY25, the company reported:

• Revenue of approximately ₹13,803 million

• Net profit of around ₹1,564 million

Despite fluctuations in margins due to coal prices and costs, the company remains debt-free and continues to generate healthy cash flows.

According to an ET report, Anand Rathi Research has given the IPO a “Subscribe” rating mainly for listing gains. The brokerage highlights the company’s dominant market position, vast coal reserves, and critical role in India’s steel ecosystem.