India's biggest coking coal producer, Bharat Coking Coal, attracted strong institutional interest by raising Rs 273 crore from anchor investors just a day before its public IPO launch.
Anchor round details
The company offered 11.88 crore equity shares to anchor investors at Rs 23 per share, the top of the Rs 21‑23 price band. The anchor book was fully subscribed, setting a positive tone for the public issue that opens on January 9.
Who joined the anchor round?
- Global and domestic institutions: Life Insurance Corporation, Societe Generale, Copthall Mauritius Investment Ltd, Citrine Fund, M7 Global Fund PCC – ASAS Global Opportunities Fund, Maybank Securities, Rajasthan Global Securities.
- Domestic mutual funds: About 7.17 crore shares went to three Indian mutual funds across eight schemes, including UTI Dividend Yield Fund, other UTI schemes, Nippon India’s small‑cap fund, and Bandhan Mutual Fund’s small‑cap scheme.
Why the anchor success matters
Fully subscribed anchor allocations suggest solid demand for the upcoming public issue. With the anchor round priced at the top of the band, the market may anticipate a strong subscription window for retail investors.
Upcoming public IPO
- Subscription period: January 9 – January 13
- Issue size: ~Rs 1,071 crore
- Price band: Rs 21–23 per share
- Listing: NSE and BSE
- Shareholding after listing: Coal India retains 90%, the IPO sells a 10% stake.
About Bharat Coking Coal
As a wholly‑owned subsidiary of Coal India, Bharat Coking Coal produces about 58.5% of India's domestic coking coal. It holds roughly 7.91 billion tonnes of reserves—the only sizable domestic source of prime coking coal, essential for steel making. The company runs 34 mines in Jharkhand’s Jharia and West Bengal’s Raniganj coalfields and is expanding its coal‑washing capacity to improve quality and revenue.
Bottom line for investors
Strong anchor demand and a fully‑subscribed book could signal a healthy retail response. However, investors should weigh the company’s operational risks, the overall steel sector outlook, and the pricing of the IPO before committing funds.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before investing.