The upcoming initial public offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, promises a potential windfall for the Nifty 50 giant.
Valued at ₹1,071 crore, the BCCL IPO is entirely an offer for sale by its parent company, Coal India, meaning all proceeds from the sale will go directly to the parent, not the subsidiary. As Coal India is looking to offload a 10% stake (46.57 crore shares) in BCCL via the maiden share sale, Mint’s calculations show that it will make a ₹605-crore windfall or 130% return on its investment.
BCCL IPO Details
The company on Monday, January 6, announced the price band for the upcoming IPO, valuing the Mini Ratna company at ₹10,700 crore at the upper end of the issue. Since the IPO is entirely an OFS, no proceeds will go to the company, and it will only enjoy the benefits of listing on the exchanges.
BCCL will make its stock market debut on January 16. In the IPO, 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.
BCCL IPO GMP
Ahead of IPO launch, the company is witnessing a strong grey market premium (GMP). BCCL IPO GMP today is ₹13.5. This means that shares are trading at ₹13.5 above the price band.
At prevailing GMP, BCCL IPO are commanding a premium of 58.70% over the IPO price.
