Coal India Set to Launch IPOs for Major Subsidiaries: What Investors Should Know

Coal India Plans IPOs for Subsidiaries

Kolkata: B Sairam, the Chairman and Managing Director of Coal India Ltd (CIL), announced on Monday that the initial public offerings (IPOs) for two of its major subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), are expected to be finalized within the current financial year.

During a session with shareholders and stakeholders, Sairam indicated that the precise timing of the IPOs would be influenced by market conditions and government regulations.

He stated, "We are aiming to complete the IPO for SECL and Mahanadi Coalfields Limited by the end of this year. The specific month and date will depend on market dynamics and government directives."

In March, CIL's board had granted preliminary approval for divesting up to 25% equity in both SECL and MCL through an offer for sale (OFS), along with a fresh issuance of equity shares by SECL, amounting to 10% of its post-issue paid-up capital via the IPO route.

The upcoming listings of these subsidiaries, which are significant contributors to CIL's overall production, come after the successful public listings of two other CIL subsidiaries—Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute Ltd (CMPDI)—earlier this year.

At CIL's 52nd Annual General Meeting, Sairam noted that BCCL was listed in January after a 10% stake offer that saw nearly 147 times subscription, while CMPDI was listed on March 30, 2026, following a 15% stake sale. He emphasized that these listings are crucial for unlocking value from CIL's subsidiaries and enhancing their access to capital markets.

In FY26, MCL and SECL emerged as CIL's top-performing subsidiaries, with MCL producing 218.31 million tonnes of coal and achieving the highest profit after tax among subsidiaries at Rs 10,698 crore. SECL produced 176.29 million tonnes and reported a profit after tax of Rs 4,755 crore, as per CIL's annual report.

Sairam also mentioned the laying of the foundation stone on June 20, 2026, for India's inaugural commercial coal gasification project, developed by Bharat Coal Gasification and Chemicals Ltd, a joint venture between CIL and BHEL.

This project involves an investment of approximately Rs 25,000 crore and aims for an annual capacity of 6.6 lakh tonnes of ammonium nitrate.

Regarding the current financial year's performance, Sairam reported positive momentum in both offtake and revenue. For the quarter ending June 30, 2026, offtake increased by 4% year-on-year, and revenue from operations rose by 8% to Rs 46,255 crore, driven by stronger realizations, with profit after tax slightly improving to Rs 8,850 crore. Offtake for July 2026 surged by 18% compared to the same month last year, while cumulative e-auction allocations for April-July 2026 commanded an average premium of 43% over the notified prices.

On diversification efforts, Sairam highlighted that CIL launched its first 100 MW solar plant in Patan, Gujarat, on May 4, 2026, and commissioned 200 MW of its 300 MW Khavda solar project on July 8, 2026, marking its first-ever revenue from renewable energy sales at Rs 5.68 crore in the first quarter of this financial year.

The company aims for a renewable capacity target of 9.5 GW by FY30. Additionally, CIL has commissioned a new 2 million tonne per annum coal washery at BCCL, raising its total washing capacity to 17.35 MTPA, and has begun production at its first revenue-sharing mine developer and operator (MDO) project at the ASGKCC mine in Katras.

On the topic of critical minerals and new ventures, Sairam revealed that CIL secured the Kawalapur Rare Earth Elements composite license block in Maharashtra in January 2026, increasing its total critical mineral blocks to five, and also acquired the Gadadharpur iron ore block in Odisha, estimated at 288 million tonnes, marking CIL's entry into iron ore mining.

Furthermore, CIL established a wholly-owned subsidiary, CIL Global Pte Ltd, in Singapore on August 24, 2026, to facilitate overseas acquisitions of critical mineral assets, alongside a joint venture with Damodar Valley Corporation to construct a 1,600 MW thermal power project at Chandrapura.