Follow PSU Watch on LinkedINNew Delhi: Coal India Limited's (CIL) board of directors has given an approval to offload upto 25 percent stake each in South-Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL), which will pave the way for the listing of two of Coal India's largest subsidiaries.
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CIL told stock exchanges that its board, in a meeting held on Monday, “accorded in-principle approval for divestment of up to 25 percent of equity shares held by Coal India Limited (CIL) in SECL through Offer for Sale (OFS), along with issuance of fresh equity shares of SECL aggregating up to 10 percent of the post-issue paid-up equity share capital, in one or more tranches, through Initial Public Offer (IPO) and/or other permissible market routes.”
The filing added that the approval “shall be communicated to the Ministry of Coal (MoC) for onward submission to DIPAM,” and that the proposed listing “remains subject to receipt of requisite regulatory approvals and completion of necessary formalities.”
The move follows an earlier circular resolution dated December 23, 2025, through which the board had already given “in-principle approval for the listing of South Eastern Coalfields Limited (SECL),” according to the company’s earlier disclosure. PSU Watch had reported at the time that the Ministry of Coal had asked CIL to take “concrete steps” to list SECL and MCL in the next financial year.
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In a separate filing, CIL said the board also accorded in-principle approval for divestment of up to 25 percent of equity shares held by CIL in Mahanadi Coalfields Limited (MCL), through OFS, “in one or more tranches, via Initial Public Offering (IPO) and/or other permissible market routes in the domestic market.”
Here too, the approval will be sent to the Ministry of Coal for onward submission to DIPAM. The filing said the proposed listing of MCL remains subject to “receipt of requisite regulatory approvals, market conditions and completion of necessary formalities.”
The latest filings extend Coal India’s broader plan to bring more subsidiaries to market. PSU Watch had reported that CIL was set to list SECL and MCL in FY27, alongside the already initiated listing process for Bharat Coking Coal Limited (BCCL) and Central Mine Planning & Design Institute Limited (CMPDIL). SECL and MCL together account for over 52 percent of Coal India’s total coal production.
For now, the listings are only at the in-principle stage. CIL has made clear that both proposals still require regulatory clearances and the completion of formalities before any public issue can move ahead.
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