Bharat Coking Coal IPO Surges to 33.6x Subscription on Investor Frenzy
Overview
Bharat Coking Coal Ltd's Rs 1,071 crore IPO is seeing robust demand, subscribed 33.6 times by its second day. Strong interest from non-institutional and retail investors propelled the issue, with the non-institutional segment booked 96.17 times. This surge reflects investor confidence amid a strong primary market cycle and aligns with the government's broader divestment strategy.
Stocks Mentioned
IPO Subscribes Massively
Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India, has witnessed overwhelming investor interest in its initial public offering. By the close of bidding on Monday, the second day, the Rs 1,071 crore issue was subscribed a remarkable 33.6 times. Exchange data revealed bids for over 11.65 billion shares against the 346.9 million shares on offer.
Investor Appetite Drives Demand
The fervor was particularly evident in the non-institutional investor (NII) category, which saw subscription levels soaring to 96.17 times. Retail individual investors also showed strong commitment, with their portion booked 26.90 times. Qualified Institutional Buyers (QIBs) subscribed 1.44 times, indicating broad-based demand. The IPO had been fully subscribed shortly after opening on Friday.
Government Divestment Strategy
BCCL had already secured over Rs 273 crore from anchor investors prior to the public offering. The current issue, an offer for sale (OFS) of 46.57 crore equity shares by Coal India, is a key component of the government's divestment plan for the coal sector. This strategy aims to unlock value in subsidiaries and enhance transparency through market-driven governance.
The company, established in 1972 and focusing on coking coal mining operations in Jharkhand and West Bengal, stated in its prospectus that listing would help achieve significant benefits. This IPO comes at a time when India's primary market has been exceptionally active, with record fundraising achieved in recent years.
