Newz Desk, Durgapur: Coal India Ltd (CIL) is set to take forward the proposed initial public offerings (IPOs) of two of its largest subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), with the company targeting completion within the current financial year.
CIL Chairman and Managing Director B Sairam said the IPOs of both subsidiaries are expected to be completed by the end of FY27, although the exact timeline will depend on market conditions and government directives.
Responding to questions from shareholders and stakeholders, Sairam said the company was committed to completing the listing process within the current financial year. He added that the specific month and date would be decided based on prevailing market conditions and directions from the government. The proposed listings are part of CIL’s broader strategy to unlock value from its subsidiaries and provide them with greater access to the capital markets.
In March this year, the CIL board had given in-principle approval for the divestment of up to 25 per cent equity stake each in SECL and MCL through an Offer for Sale (OFS). The plan also includes the issue of fresh equity shares by SECL equivalent to up to 10 per cent of its post-issue paid-up capital through the IPO route.
SECL and MCL are among the largest coal-producing subsidiaries of Coal India and together account for around half of the company’s total coal production. Their proposed listings are therefore expected to be significant additions to India’s listed coal and mining sector.
The move comes after two other CIL subsidiaries, Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute Ltd (CMPDI), completed their public listings earlier this year.
Addressing CIL’s 52nd Annual General Meeting, Sairam had described the proposed listings of SECL and MCL as an important step towards unlocking value from the company’s subsidiaries and broadening their access to capital markets.
The planned IPOs are also expected to increase the visibility of the two subsidiaries among investors while providing a market-based valuation of their businesses. For CIL, the divestment could help unlock shareholder value while retaining a significant stake in the strategically important coal-producing companies.
