Coal India plans IPOs for two largest subsidiaries
Coal India Ltd (CIL) plans to launch initial public offerings (IPOs) of its two largest coal-producing subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), within the current financial year, the company's Chairman and Managing Director B Sairam said at the company's annual general meeting.
"Regarding IPOs of South Eastern Coalfields and Mahanadi Coalfields, we plan to hold the IPOs by year-end positively. The IPOs will be completed within this current financial year only. The exact month and date will depend upon the market conditions and the government directives, etc," Sairam said, as reported by The Times of India and The Hindu Business Line.
The CIL board has accorded in-principle approval for the listing of SECL and MCL, Sairam added. Among CIL's seven coal-producing subsidiaries, MCL and SECL are the two largest in terms of output.
Mahanadi Coalfields IPO details
Coal India is selling a 10% stake in Mahanadi Coalfields through the fully owned subsidiary's IPO, according to draft papers filed with the market regulator, as reported by The Hindu Business Line. The company is offloading up to 661.8 million shares in its unit. Mahanadi Coalfields is not selling any new shares in the offering and will not receive any proceeds.
The unit operates primarily in the eastern state of Odisha and accounted for 21% of India's overall domestic coal production and 28.4% of Coal India's total coal production in fiscal year 2026. Coal India, which contributed about 74% of India's total coal production in fiscal 2026, had said in March it could sell up to 25% stakes in subsidiaries Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes.
The Mahanadi Coalfields IPO is being managed by SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services, according to the draft papers.
Regulatory approvals and recent listings
The Department of Investment and Public Asset Management (DIPAM) earlier this year approved the proposal to list Mahanadi Coalfields through a combination of fresh equity issuance and disinvestment by CIL through an offer for sale (OFS), as reported by The Hindu Business Line and The Times of India.
In the last financial year, two CIL subsidiaries — Bharat Coking Coal Ltd (BCCL) and Central Mine Planning & Design Institute (CMPDI) — made successful market debuts. BCCL was listed on January 19, 2026, following an offer for sale of a 10% stake, which received subscription of nearly 147 times. CMPDI was subsequently listed on March 30, 2026, following a 15% stake sale.
According to The Hindu Business Line, Bharat Coking Coal, which went public in January, is down about 25% from its debut price, while Central Mine Planning & Design Institute is up 39% since its March listing.
Coal India's broader activities
At the annual general meeting, Sairam also highlighted other developments at Coal India. The company contributed around ₹10,272 crore to the Government of India by way of dividend. It commissioned an additional 2 million tonne per annum coal washery at Bharat Coking Coal Limited. In January 2026, CIL secured the Kawalapur Rare Earth Elements (REE) Composite Licence Block in Maharashtra. The company also secured the Gadadharpur iron ore block in Odisha with an estimated resource of 288 million tonnes, as reported by The Hindu Business Line.