Coal India Share Price Pares Gains Post Two-Month High As Arm BCCL Gears Up For IPO
Shares of Coal India Ltd. are in focus on Monday as the company’s wholly-owned subsidiary Bharat Coking Coal gears up to launch its IPO, revealing its price band. The development has led to a surge in Coal India’s stock price, which hit a two-month high in early trade.
Coal India’s stock rose as much as 2.06% to Rs 436.70 apiece, the highest level in two months. However, it pared gains to trade 0.49% lower at Rs 425.80 apiece, as of 10:00 a.m. This compares to a 0.08% decline in the NSE Nifty 50 Index.
BCCL IPO Details: Price Band, Anchor Investor Bidding, and More
The Bharat Coking Coal issue is a pure offer-for-sale of up to 46.57 crore equity shares of face value Rs 10 each by Coal India. Post listing, BCCL’s shares will trade on the main board of both BSE and NSE.
Anchor investor bidding opens on Thursday, while the IPO will be available for public subscription from Jan. 9 to Jan. 13. Eligible employees under the employee reservation portion will receive a discount of Rs 1 per share.
The IPO includes a reservation of up to 2.32 crore shares for eligible employees and up to 4.66 crore shares for Coal India shareholders. The price band for the IPO has been set at Rs 21-23 per share.
What Does This Mean for Coal India Shareholders?
The IPO is expected to provide an opportunity for Coal India shareholders to participate in the growth of BCCL. However, the impact of the IPO on Coal India’s share price will depend on various factors, including the response to the public issue and the company’s overall performance.
Out of 25 analysts tracking the company, 14 maintain a ‘buy’ rating, six recommend a ‘hold,’ and five suggest ‘sell,’ according to Bloomberg data. The average 12-month consensus price target implies a downside of 5.7%.
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Key Takeaways for Investors
Here are the key takeaways for investors:
- The BCCL IPO is a pure offer-for-sale of up to 46.57 crore equity shares of face value Rs 10 each by Coal India.
- The price band for the IPO has been set at Rs 21-23 per share.
- Anchor investor bidding opens on Thursday, while the IPO will be available for public subscription from Jan. 9 to Jan. 13.
- Eligible employees under the employee reservation portion will receive a discount of Rs 1 per share.
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