The IPO of India’s largest coking coal miner was oversubscribed on the first day of bidding on Friday, as investors lined up for the first main board listing of 2026 and the maiden public sale from a firm in the key sector.
Bharat Coking Coal’s $118.7 million IPO drew bids for 1.72 billion shares, nearly five times the shares on offer, as of 1:20 p.m. IST. The firm’s parent state-owned Coal India is offloading a 10% stake in the IPO.
India was the world’s second-largest primary equity issuance market in 2025, with firms raising $21.8 billion through 367 deals in 2025, data compiled by LSEG showed.
“The pace of oversubscription in BCCL’s IPO sets the tone for the rest of the year,” said Mahesh Ojha, vice president of research and business development at Kantilal Chhaganlal Securities.
“India’s coking coal demand remains structurally strong, driven by sustained growth in steel production, infrastructure development, and industrial expansion,” Ojha said in a note.
Coking coal is a critical raw material for blast furnace-based steelmaking. India, the world’s second-largest crude steel producer, is seeking to curb import dependence amid rising demand.
At the IPO, retail investors bid for 864.9 million shares, more than six times the portion allocated to them.
The offering comes as the Indian government is pursuing divestment plans in state-owned firms, with public sector banks and energy firms at the forefront.
Bharat Coking’s revenue fell 3% to 138.03 billion rupees in fiscal year 2025, while its net profit declined 20% to 12.4 billion rupees.
The firm had total reserves of about 1,495.4 million tonnes as of March 31, 2025.
The shares are expected to make their trading debut on January 16.
($1 = 90.2650 Indian rupees)
(By Urvi Dugar and Hritam Mukherjee; Editing by Sonia Cheema and Mrigank Dhaniwala)
