Kolkata, March 23, 2026: Coal India Limited (CIL) has granted in-principle approval to divest up to 25% of its equity stake in South Eastern Coalfields Limited (SECL) through an Offer for Sale (OFS), while also approving a fresh equity issuance of up to 10% of SECL’s post-issue paid-up capital.
The move marks a significant step toward SECL’s proposed public listing and is aimed at increasing transparency, broadening investor participation, and strengthening market efficiency in India’s coal sector.
IPO Plan and Structure
According to the company, the divestment and fresh issue will be executed in one or more tranches via an Initial Public Offering (IPO) or other permissible domestic market routes. The process will comply with regulations set by the Securities and Exchange Board of India (SEBI), including the ICDR Regulations, 2018, and the Securities Contracts (Regulation) Rules, 1957.
Key highlights:
- Up to 25% stake sale via OFS by Coal India
- Fresh issue of up to 10% equity by SECL
- Listing to be executed in phased tranches
- Subject to regulatory and government approvals
This follows an earlier in-principle approval granted by Coal India’s Board on December 23, 2025, for SECL’s listing.
Next Steps and Government Approval
The proposal will now be forwarded to the Ministry of Coal (MoC) for further processing and submission to the Department of Investment and Public Asset Management (DIPAM).
The final IPO and listing of SECL remain contingent upon:
- Regulatory clearances
- Market conditions
- Completion of statutory and procedural requirements
Strategic Significance
The proposed stake sale is part of Coal India’s broader strategy to unlock value from its subsidiaries and align with the government’s disinvestment objectives.
By partially listing SECL, the company aims to:
- Enhance corporate transparency and governance
- Improve operational efficiency through market discipline
- Expand retail and institutional investor participation
- Strengthen the overall visibility of India’s coal sector
B. P. Dubey, Executive Director (Company Secretary) and Compliance Officer at Coal India, stated that the decision reflects the company’s commitment to regulatory compliance and market-driven divestment strategies.
About SECL
South Eastern Coalfields Limited is one of India’s largest coal-producing companies and a key subsidiary of Coal India. The proposed IPO and equity expansion are expected to diversify its investor base and drive greater efficiency in operations.
About Coal India Limited
Headquartered in Kolkata, Coal India Limited is a Maharatna public sector enterprise and the largest coal producer in India. Listed on major stock exchanges, the company plays a pivotal role in meeting the country’s energy demands.
Outlook
If successfully executed, the SECL listing could become one of the most notable public offerings in India’s mining sector, signaling a shift toward greater market participation and transparency in state-owned enterprises.