CIL approves IPO plans for SECL and MCL, up to 25% stake sale

Coal India Limited (CIL) has approved in-principle plans to list two of its subsidiaries, South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL), on domestic stock exchanges, with divestment of up to 25% equity in each through the Offer for Sale (OFS) route. The approvals were granted at CIL’s board meeting on March 23, 2026.

Structure and approval process

The two proposals differ in structure. SECL’s listing will include a fresh issue of equity shares of up to 10% of post-issue paid-up capital, alongside the OFS component. This will result in capital inflow to the company, in addition to CIL’s stake dilution.

In contrast, MCL’s listing is structured as a pure OFS, with no fresh equity issuance and CIL as the sole selling shareholder.

Both listings may be executed in one or more tranches through an initial public offering (IPO) and/or other permissible domestic routes, in line with SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018.

The proposals will be submitted to the Ministry of Coal and the Department of Investment and Public Asset Management (DIPAM) for further approvals. The listings remain subject to regulatory clearances and market conditions.

Operational scale and context

SECL, headquartered in Bilaspur, operates across Chhattisgarh and Madhya Pradesh and is among the largest producing subsidiaries of CIL. MCL, based in Sambalpur, Odisha, is a key contributor to CIL’s output, with a strong presence in the eastern coal belt.

The proposed listings would provide investors with direct access to two of India’s largest coal-producing entities. The move aligns with the government’s strategy to monetise public sector assets while retaining majority control, with CIL continuing to hold a dominant stake post-divestment.