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.
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.
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.
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.
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.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join TelegramThe Rs 1,071 crore Bharat Coking Coal IPO sold out in just 30 minutes, thanks to strong interest from retail investors. Quick Overview The offer opened on Friday and was booked 1.12 times by 10:30 AM. Investors wanted 38.9 crore shares while only 34.69 crore were on offer. Retail investors subscribed 1.5 times their quota. Non‑institutional investors subscribed 1.99 times. Shareholder allocation (4.65 crore shares) was taken up 1.29 times. Qualified Institutional Buyers showed very little interest (0.01 times). Grey‑Market Sentiment In the unofficial market, the shares are trading at about a 50% premium over the IPO price, suggesting investors expect a strong first‑day performance. Remember, grey‑market premiums can change quickly with market moves. IPO Details Issue size: Rs 1,071 crore (offer for sale by Coal India). Price band: Rs 21‑23 per share (face value Rs 10). Minimum lot: 600 shares. Closing date: 13 January. Listing: NSE and BSE. About Bharat Coking Coal Bharat Coking Coal (BCCL) is India’s biggest producer of coking coal, a key ingredient for steel. It holds about 7.9 billion tonnes of reserves – roughly 21.5 % of the country’s total coking coal – and supplied 58.5 % of domestic production in FY 2025. Operates 34 mines in Jharkhand (Jharia) and West Bengal (Raniganj). Close to steel plants and linked to good transport networks. Investing in coal washeries to produce higher‑quality washed coal. BCCL is a wholly‑owned subsidiary of Coal India, the world’s largest coal producer, giving it strong technical and financial backing. Valuation and Financial Snapshot Price band values the company at about 8.6 times FY 2025 earnings (upper band). FY 2025 revenue: Rs 13,803 million. Consolidated profit: Rs 1,564 million. Business is cash‑generative and debt‑free. Analyst View Research house Anand Rathi gave the IPO a “Subscribe” rating, mainly for potential short‑term listing gains. They note the company’s strong market position and reserve base, but also point out that most of the upside is already priced in, limiting long‑term re‑rating prospects. Overall, analysts see the IPO as a tactical play rather than a long‑term growth story. The scarcity of prime coking coal and interest in PSU divestments could push the share price higher on debut, but the business remains tied to the cyclical steel sector. Key Risks Revenue depends heavily on raw coking coal demand and price parity with imports. Operations are concentrated in the Jharia and Raniganj regions, making them vulnerable to regulatory or environmental issues. Steel demand cycles can affect earnings. Bottom Line For short‑term traders, the Bharat Coking Coal IPO offers a chance to capture listing gains, especially given the high retail participation and strong grey‑market premium. Long‑term investors should weigh the company’s strategic importance against its exposure to steel‑demand cycles and limited growth catalysts after the listing. Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.
Defrail Technologies, a maker of rubber parts for automotive, rail and defence, is launching its IPO on the BSE SME platform. Key Subscription Details Issue size: Rs 13.77 crore (18.6 lakh shares) Price band: Rs 70–74 per share (face value Rs 10) Opening date: Friday (subscription closes Jan 13) Listing date: Jan 16 on BSE SME No offer‑for‑sale; all proceeds go to the company Minimum retail lot: 3,200 shares (about Rs 2.36 lakh at the top of the band) Grey Market Premium In the unofficial grey market, the shares are trading about 8% above the top of the price band. This suggests investors expect a modest rise after listing, but remember grey market prices can change quickly, especially for SME issues with limited liquidity. What Defrail Technologies Does The company manufactures custom rubber hoses, assemblies, profiles, beadings and molded products. Its customers include auto manufacturers, Indian Railways and defence organisations. It operates two factories in Faridabad, Haryana. Recent Financial Performance Revenue (6‑month to Sep 2025): Rs 39.08 crore Profit after tax (6‑month): Rs 1.51 crore Full‑year FY 2025 revenue: Rs 62.22 crore Full‑year FY 2025 net profit: Rs 3.42 crore Total borrowings (Sep 2025): Rs 11.78 crore Lead Managers Book‑running lead manager: NEXGEN Financial Solutions.Registrar: Maashitla Securities. Disclaimer Remember, this is perspective, not prediction. Do your own research before making any investment decisions.
Coal India’s shares have tripled in five years, and the upcoming BCCL IPO could add another layer of value for investors. Why the BCCL IPO matters Bharat Coking Coal (BCCL) holds some of India’s biggest and highest‑quality coking‑coal reserves. This type of coal is essential for making steel, and India currently relies heavily on imports. A separate listing lets the market value these reserves on their own. Potential benefits Cash inflow: Coal India will sell about 10% of BCCL, raising roughly Rs 600 crore. Better price discovery: Investors can see the true worth of BCCL’s assets, which may lift Coal India’s overall valuation. Strategic flexibility: Holding 90% of a top‑coking‑coal producer keeps the parent company well‑positioned in the steel supply chain. Risks and limits Holding‑company discount: Even after the IPO, Coal India could still trade below the value of its assets. Cyclic nature: Demand for coking coal follows the steel industry, which can be volatile. Regulated pricing: Coal prices are partly controlled by the government, limiting upside. Analysts’ views Some see the listing as a short‑term boost, driven by the scarcity of prime coking coal and strong interest in PSU divestments. Others think the real upside will come later, as the market gradually re‑rates Coal India and possibly lists more subsidiaries. What investors should watch How much cash actually gets raised and how it is used. Whether Coal India’s share price narrows the discount to its net‑asset value. Future performance of the steel sector, which drives coking‑coal demand. Potential listings of other Coal India subsidiaries, which could unlock additional value. In short, the BCCL IPO is unlikely to dramatically change Coal India’s earnings right away, but it adds transparency and a new tool for value creation. Remember, this is just perspective, not a prediction. Do your own research before making any investment decisions.