Coal India IPOs for SECL, MCL by Year-End: Diversification Push

Coal India Ltd (CIL) plans Initial Public Offerings (IPOs) for two key subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), by the end of the current financial year.

This move is contingent on market conditions and government directives. These subsidiaries collectively contribute about half of CIL’s total coal output.

Divestment Strategy

CIL’s board previously approved divesting up to a 25 percent equity stake in both SECL and MCL via an Offer For Sale (OFS).

SECL also intends to issue up to 10 percent fresh equity shares. This follows successful public listings earlier this year for Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute Ltd (CMPDI).

MCL and SECL were CIL’s top-performing subsidiaries in FY26. MCL recorded the highest profit after tax among all subsidiaries.

Diversification Efforts

Beyond coal production, CIL is actively diversifying its portfolio across multiple sectors.

The company laid the foundation for India’s first commercial coal gasification project. This joint venture with BHEL involves substantial investment, targeting an annual capacity of 6.6 lakh tonnes of ammonium nitrate.

In renewable energy, CIL commissioned its first 100 MW solar plant in Gujarat. It also brought 200 MW of its 300 MW Khavda solar project online, generating its initial renewable energy sale revenue.

CIL targets 9.5 GW of renewable capacity by FY30. The company also entered critical minerals, securing blocks for rare earth elements and iron ore, marking its entry into iron ore mining.

A wholly-owned subsidiary, CIL Global Pte Ltd, was incorporated in Singapore. This entity will facilitate overseas critical mineral asset acquisitions.

Additionally, CIL formed a joint venture with Damodar Valley Corporation. This partnership is for a 1,600 MW thermal power project.

Financial Performance

CIL showed encouraging financial momentum in the first quarter of the current financial year. The quarter saw increased offtake and revenue from operations, alongside a marginal improvement in profit after tax.