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Coal India's Bharat Coking Coal unit's IPO is fully subscribed on the first day of auction

Bharat coal Coking Ltd (BCCL)'s $118.65m IPO was fully subscribed at the opening of bidding Friday. Exchange data shows that the Coal 'India' unit, which is the country’s largest producer and exporter of coking coal, a vital steelmaking fuel, received bids of 913.5 millions shares at 11:24 am IST, against 346.9million shares offered.

BCCL is going public because India, which is the second largest crude steel producer in the world, wants to?reduce its import dependency amid increasing demand and efforts?to secure?new sources of supply. Coal India has decided to sell all of the shares, which is equivalent to a 10% stake.

Retail investors bid on 504.1 million shares -?about 3.64x the number of shares allotted to them.

The offer comes at a time when the Indian government is working on divestment strategies to unlock the value of state-owned companies, with public sector energy and banks leading the way.

Data compiled by LSEG revealed that India would be the second largest?primary equity issuance markets in 2025. It will raise $21.8 billion in 367 deals.

According to BCCL's prospectus, its revenue fell by 3% in fiscal 2025 to 138.03 bn rupees and its net profit dropped by 20% to 12.4 bn rupees.

The company operates mines in Jharkhand, West Bengal and other eastern Indian states. As of March 31, 2025, the company had total reserves of approximately 1,495.4 millions?tonnes.

ICICI Securities and IDBI Capital Markets and Securities will be the book-running leading managers of the offering.

(source: Reuters)