Coal India IPOs: SECL & MCL Set for Year-End Listing

Coal India Ltd (CIL) Chairman and Managing Director B Sairam announced plans to complete Initial Public Offerings (IPOs) for two significant subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), by the end of the current financial year.

This move, subject to market conditions and government directives, follows previous successful listings of CIL arms Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute Ltd (CMPDI) earlier in the year.

• CIL’s board granted in-principle approval in March for divestment of up to a 25 percent equity stake in both SECL and MCL via an Offer for Sale (OFS).
• SECL is also authorized to issue fresh equity shares, up to 10 percent of its post-issue paid-up capital, through the IPO route.

SECL and MCL are crucial to CIL’s operations, collectively contributing approximately half of the company’s total coal output.

• In fiscal year 2026, MCL led with 218.31 million tonnes of coal production and a profit after tax of Rs 10,698 crore.
• SECL produced 176.29 million tonnes, reporting a profit after tax of Rs 4,755 crore in the same period.

CIL’s Strategic Initiatives and Performance

Beyond the planned IPOs, CIL is pursuing various strategic projects, including India’s first commercial coal gasification project, a joint venture with BHEL.

• The foundation stone for the gasification project, involving an investment of approximately Rs 25,000 crore, was laid on June 20, 2026.
• This project aims for an annual capacity of 6.6 lakh tonnes of ammonium nitrate.

CIL also reported strong financial performance for the quarter ending June 30, 2026, marking a 4 percent year-on-year increase in offtake.

• Revenue from operations grew 8 percent to Rs 46,255 crore.
• Profit after tax marginally improved to Rs 8,850 crore.
• Offtake in July 2026 increased 18 percent over the previous year.
• Cumulative e-auction allocations for April-July 2026 achieved an average premium of 43 percent over notified prices.

The company is diversifying its energy portfolio, having commissioned its first 100 MW solar plant in Patan, Gujarat.

• Additionally, 200 MW of its 300 MW Khavda solar project is now operational, generating an initial renewable energy sale revenue of Rs 5.68 crore in Q1 FY27.
• CIL has set an ambitious target of achieving 9.5 GW of renewable capacity by FY30.

CIL further expanded its coal washing capacity by commissioning an additional 2 million tonne per annum coal washery at BCCL and initiated production from its first revenue-sharing mine developer and operator (MDO) project.

In critical minerals, CIL secured the Kawalapur Rare Earth Elements composite licence block in Maharashtra and the Gadadharpur iron ore block in Odisha, marking its entry into iron ore mining.