Mumbai: Bharat Coking Coal Limited (BCCL) has made a sensational debut on the stock exchanges, listing at nearly 95% premium as investors pin their hopes for consistent returns on the stock. The Coal India subsidiary has seen an overwhelming demand from the company’s Offer For Sale(OFS) IPO, offering ₹1,071 crore worth of shares to the public.
BCCL produces coking and non-coking coal, with its IPO being highly awaited ever since the RHP was filed by Coal India earlier in January. After a delay in listing due to the BMC elections, BCCL listed today, January 19, at a nearly 95% premium, as investors note the strategic importance of the company as a leading coal supplier for steel production and Coal India’s dominant position in the domestic coal sector.
“A combination of things like lower ticket price, reasonable valuations and strong parentage of Coal India have driven the surge in stock,” Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, said to a leading publication.
“One can look at Bharat Coking Coal as a proxy player for steelmakers, which currently enjoys a strong business outlook,” he added.
BCCL manages an estimated 7.91 tonnes of coking coal reserves as of April 2024, almost 21.5% of India’s total resources. The company has steadily ramped up production over the years, from 30.5 million tonnes in FY22 to about 40.5 million tonnes in FY25, as it reopened discontinued underground mines, expanded existing ones, and boosted efficiency in its coal washeries.
Coal India offered 46.57 crore shares in the IPO. Following the listing, its shareholding in BCCL has reduced to about 90% while retaining government control.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
