The much‑awaited listing of Bharat Coking Coal may be pushed back by a few days because the stock exchanges will be closed on Jan 15 for elections in Maharashtra.
Why the listing could slip
The IPO opened on Jan 9 and was set to close on Jan 13. Allotment was expected on Jan 14, with refunds and share credit scheduled for Jan 15. Since Jan 15 is a settlement holiday, those post‑allotment steps are likely to move to Jan 16, which means the actual listing could shift from Jan 16 to Jan 17 or even Jan 19, pending official confirmation.
Strong demand despite the possible delay
Investor enthusiasm remains high. The Rs 1,071 crore issue was fully subscribed within 30 minutes on day one and more than 25 times oversubscribed by the end of day two. Retail and non‑institutional investors led the bidding, showing confidence in the company’s valuation.
In the grey market, the shares traded at a premium of about Rs 11 (≈46% above the top issue price of Rs 23), hinting at expected listing gains even in a volatile market.
About Bharat Coking Coal
- Largest producer of coking coal in India and sole major domestic supplier of prime coking coal.
- Controls roughly 21.5% of India’s total coking coal reserves (≈7.91 billion tonnes).
- Accounts for about 58.5% of domestic coking coal production in FY25.
- Operates 34 mines in Jharkhand and West Bengal, close to major steel plants.
- Subsidiary of Coal India, the world’s biggest coal producer.
Financial snapshot and valuation view
- FY25 revenue: ~Rs 14,401 crore.
- Consolidated profit: ~Rs 1,240 crore.
- Debt‑free and cash‑generative.
- Analysts price the upper band (Rs 23) at about 8.6 × FY25 earnings or an EV/EBITDA of 6.4 × post‑issue capital.
Brokerages generally recommend subscribing mainly for potential listing gains, noting that the valuation appears fairly priced given the company’s market share and reserve base.
Key takeaway
Even if the listing is delayed by a few days, strong subscription levels and a solid financial profile suggest the IPO could still deliver healthy returns for investors.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.