Day 2 GMP Surge for Bharat Coking Coal IPO: Worth Your Bet? Check Details
Synopsis
Bharat Coking Coal's IPO is attracting strong investor interest, with its grey market premium suggesting a potential 46% listing gain. The price band is set at Rs 21-23 per share. A key detail for investors is that the issue is a 100% OFS.
Bharat Coking Coal Limited’s IPO is drawing strong attention from investors, with grey market signals pointing to a potentially bumper debut on the stock exchanges. As of 7:56 am on January 12, the issue was commanding a grey market premium (GMP) of Rs 10.6, according to Investorgain data. With the upper price band set at Rs 23, the implied listing price works out to nearly Rs 33.6 per share, indicating an expected gain of about 46 per cent for investors on listing day.
Pocket-Friendly Entry for Retail Bidders
The company has fixed the IPO price band at Rs 21–23 per share. Retail investors must apply for a minimum of 600 shares, which means an investment of Rs 13,800 at the upper end. This relatively low entry point has made the offer attractive to small investors compared with many recent big-ticket IPOs.
Valuation Looks Good, But There's a Catch
Experts believe the valuation is reasonable given Bharat Coking Coal's recent financial performance and long-term demand outlook from the steel sector.
Rajan Shinde, Research Analyst at Mehta Equities, said the IPO offers a rare chance to invest in a quality PSU coal asset that generates steady cash flows. However, he also flagged a key concern, the IPO is a 100 per cent offer-for-sale (OFS), meaning the company will not receive any fresh funds from the issue.
Entire Issue Is Promoter Stake Sale
The Rs 1,071.11 crore IPO consists of 46.57 crore equity shares and is completely an OFS. As a result, the entire proceeds will go to the selling shareholder, and not into the company’s books.
Important Dates for Investors
The public issue will close on January 13. The allotment is expected to be finalised on January 14, and the shares are likely to debut on the BSE and NSE on January 16.
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