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The grey market is flashing loud signals ahead of Bharat Coking Coal Ltd’s stock-market debut, with the IPO commanding a premium that points to a potential 54 per cent listing gain even after a last-minute delay pushed the listing to Monday. For investors who piled into one of the most heavily subscribed PSU offerings in recent memory, the question now is not whether demand was strong, but whether the froth can sustain once the stock hits the exchanges.As of Sunday morning, January 18, the grey market premium for the Bharat Coking Coal IPO stood at ₹12.4, implying an estimated listing price of about ₹35.4 against the issue price of ₹23 per share. That translates into an expected upside of 53.91 per cent, according to grey market data, reflecting the intensity of unofficial market interest a day before the rescheduled debut.
Listing pushed back, enthusiasm intact
Bharat Coking Coal, a subsidiary of Maharatna PSU Coal India, was originally slated to list on January 16. The debut was postponed to January 19 after stock exchanges announced a trading holiday on January 15 due to municipal corporation elections in Maharashtra, as communicated in updated exchange filings. The allotment was finalised on January 14, with refunds expected to be processed on January 16.
Despite the brief pause, sentiment in the grey market has remained firm. Traders and investors continue to price in a strong debut, suggesting that the delay has done little to dent confidence around the offering.
One of the most oversubscribed PSU IPOs
The numbers from the subscription window tell their own story. Bharat Coking Coal’s IPO drew bids worth more than ₹1.17 lakh crore, placing it among the most heavily subscribed PSU offerings in recent years. At the upper end of the price band, bids were received for over 50.93 crore shares, resulting in an overall subscription of nearly 147 times.
More than 90 lakh applications poured in, reflecting broad-based participation across investor categories. Qualified institutional buyers and non-institutional investors emerged as the primary drivers of demand, while retail investors and shareholder quota applicants also showed strong interest.
Bharat Coking Coal issue details at a glance
The IPO was priced at ₹23 per share, with a lot size of 600 shares, translating into a minimum investment of ₹13,800 for retail investors. Allotment status became available on January 14, even as the market adjusted to the revised listing timeline.
A strategic asset in India’s coal ecosystem
Bharat Coking Coal occupies a critical position in India’s energy and industrial landscape. According to its offer documents, the company is India’s largest producer of coking coal, accounting for 58.5 per cent of domestic output in FY25. It operates 34 mines across Jharkhand and West Bengal and holds an estimated reserve base of 7.91 billion tonnes as of April 2024, more than 20 per cent of the country’s total coking coal reserves.
Crucially, Bharat Coking Coal is the only meaningful domestic source of prime coking coal, a key input for steelmaking, making its operations central to India’s efforts to reduce reliance on imports.
With the stock set to debut on Monday, investors will be watching closely to see whether the buoyant grey market expectations translate into a blockbuster listing, or whether the market tempers its enthusiasm once trading begins.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times.)
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