Bharat Coking Coal IPO: Price Band, Lot Size, Timeline and 10 Key Details for Investors
The initial public offering of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, is set to open for subscription on Friday, January 9. The IPO has generated strong interest among retail and institutional investors, given its attractive pricing and healthy grey market signals. The issue will close on January 13, with listing scheduled later in the month.
Here is a detailed and investor-friendly breakdown of the 10 most important things you need to know before considering an investment in the Bharat Coking Coal IPO.
1. IPO Opening and Closing Dates
The Bharat Coking Coal IPO will be open for bidding from January 9 to January 13. Investors must submit their applications within this window through ASBA-enabled bank accounts or online trading platforms.
2. Anchor Investor Bidding
The anchor investor portion of the issue will open a day earlier on January 8. Participation by large institutional investors at this stage often reflects confidence in the issue.
3. Issue Size and Structure
The IPO is valued at approximately ₹1,071.11 crore. It is a 100% offer for sale (OFS) of about 465.7 million equity shares by the promoter, Coal India. There is no fresh issue component.
4. Objective of the IPO
Since the issue is entirely an offer for sale, Bharat Coking Coal will not receive any proceeds from the IPO. The funds raised will go directly to the selling shareholder, Coal India.
5. Price Band
The company has fixed the IPO price band at ₹21 to ₹23 per share. Investors can bid at any price within this range, with the final issue price determined after the book-building process.
6. Investor Reservation
The net issue has been allocated across investor categories as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Individual Investors (RIIs)
7. Lot Size for Retail Investors
Retail investors can apply for a minimum of 600 shares per lot and in multiples thereafter. At the upper price band of ₹23, the minimum investment works out to ₹13,800.
8. Lead Managers and Registrar
The IPO is being managed by IDBI Capital Markets & Securities and ICICI Securities as the book-running lead managers. KFin Technologies has been appointed as the registrar to the issue.
9. Allotment and Listing Dates
The basis of allotment is expected to be finalised on January 14. Successful applicants will see shares credited to their demat accounts shortly thereafter. The stock is scheduled to list on both the BSE and NSE on January 16.
10. Grey Market Premium (GMP)
In the unlisted market, Bharat Coking Coal shares are reportedly trading at around ₹36.5. This indicates a grey market premium of nearly ₹13.5 per share, or about 58.7% over the upper price band, reflecting strong listing expectations. However, GMP is an unofficial indicator and can change rapidly.
Final Thoughts
The Bharat Coking Coal IPO offers investors exposure to a key subsidiary of Coal India at a relatively modest valuation. While grey market trends appear encouraging, investors should carefully assess their risk appetite and long-term investment goals before applying.
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