The grey market premium (GMP) for Bharat Coking Coal Ltd (BCCL) surged to nearly 70% on Monday after the Coal India subsidiary announced the price band for its ₹1,071-crore Initial Public Offering (IPO).
According to platforms tracking unofficial market activity, BCCL shares are commanding a strong premium ahead of the issue. Investorgain quoted a GMP of around ₹16 per share, implying a potential listing gain of about 69.6%, while IPO Watch reported GMP levels close to 70%.
BCCL has fixed the IPO price band at ₹21–23 per share, valuing the company at over ₹10,700 crore at the upper end. The IPO will open for subscription on January 9, making it the first public issue of 2026, and will close on January 13. Anchor investor bidding is scheduled for January 8.
As per the red herring prospectus (RHP), the issue is entirely an offer for sale (OFS) of 46.57 crore equity shares by parent company Coal India Ltd, amounting to ₹1,071.11 crore at the top end of the price band.
The listing of Bharat Coking Coal forms part of the government’s broader divestment strategy in the coal sector, aimed at unlocking value in Coal India’s subsidiaries and improving transparency through public market participation. The company’s shares are expected to list on January 16.
In terms of allocation, 50% of the issue has been reserved for qualified institutional buyers (QIBs), 35% for non-institutional investors (NIIs), and the remaining 15% for retail investors.
BCCL is India’s largest producer of coking coal in FY25, according to a CRISIL report. During the six months ended September 30, 2025, the company produced 15.75 million tonnes of coal, compared with 19.09 million tonnes in the corresponding period last year.
As of September 30, 2025, Bharat Coking Coal operated 34 mines, comprising 4 underground mines, 26 opencast mines, and 4 mixed mines. The IPO comes after another Coal India arm, Central Mine Planning and Design Institute Ltd (CMPDIL), filed draft papers with Sebi last year for a public issue via the OFS route.
