Coal India Approves Plan to List 25% Stakes in South Eastern Coalfields and Mahanadi Coalfields Units in Upcoming IPO

Coal India Limited Approves Partial Stake Sale in Subsidiaries

Key Highlights:

• Coal India Limited's board has sanctioned a proposal to partially sell stakes in two of its major subsidiaries: South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL).
• The company plans to divest up to 35% of SECL, with 25% to be sold through an Offer for Sale (OFS) and up to 10% via an IPO or other allowed methods.
• MCL will see a 25% stake sale through OFS, conducted via an IPO or other market avenues.

Background:

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• The decision is part of Coal India Limited's strategy for listing its subsidiaries.
• The company had previously authorized the separate listings of SECL and MCL through distinct resolutions in December 2025.
• The proposal will now be forwarded to the Ministry of Coal for additional submission to DIPAM, with final implementation contingent on regulatory approvals.

Subsidiary Overview:

• SECL is a major producing subsidiary, managing 60 coal mines located in Chhattisgarh and Madhya Pradesh, encompassing both underground and surface mining operations.
• MCL, a Miniratna company located in Sambalpur, was established from SECL in 1992 and continues to be a significant contributor to Coal India's overall production.

Market Reaction:

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• Coal India Limited's share price opened at an intraday high of ₹463.85 apiece on the BSE, before declining to an intraday low of ₹439 per share.
• The stock has slipped below its key 20-day EMA, indicating a negative technical signal.
• Further downside towards ₹420 could be seen in the near term if prices continue to sustain below the ₹450 level.