Bharat Coking Coal IPO: Anchor Book Garners Rs 273 Crore From LIC, Bandhan MF, Others

Bharat Coking Coal Ltd. on Thursday raised Rs 273 crore from institutional investors under the anchor round ahead of the initial public offering. Over 11.8 crore equity shares were allotted at Rs 23 apiece, according to a stock exchange filing.

Life Insurance Corporation of India secured 28.56% of the anchor book for Rs 78 crore. Bandhan Smallcap Fund and Nippon India Mutual Fund cornered around 27% each.

UTI Mutual Fund, Societe Generale, ASAS Capital and Citrine Capital are the other investors in the pre-IPO round.

The Bharat Coking Coal IPO will open for subscription on Jan. 9, and will close on Jan. 13. The Rs 1,300-crore issue will be entirely an offer for sale, under which promoter Coal India Ltd. will sell up to 46.57 crore equity shares.

The price-band of the public offer is Rs 21-Rs 23. Investors can apply for a minimum of one lot of 600 shares and in multiples thereafter.

The allotment of shares to IPO investors will be done tentatively on Jan. 14, and it will be credited to the demat account will be done on Jan. 15. Bharat Coking Coal will list on the BSE and NSE on Jan. 16.

The book running lead managers to the IPO are IDBI Capital Markets & Securities and ICICI Securities Ltd.

Founded in 1972, BCCL is India’s largest producer of coking coal and among the biggest holders of coking coal reserves in the country, with estimated reserves of around 7,910 million tonnes as of April 1, 2024. The company is a wholly owned subsidiary of Coal India and was granted ‘Mini Ratna’ status in 2014.

Its operations are primarily located in the Jharia coalfields in Jharkhand and the Raniganj coalfields in West Bengal.

The grey market premium of Bharat Coking Coal is Rs 10 on Jan. 8, as per data on InvestorGain website. The GMP indicated a listing price of Rs 343 and a listing premium of 43%.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.