2 days ago
Coal India Plans IPOs for Two Subsidiaries by Year-End
Coal India owns several large coal companies.
It plans to offer shares of two of them, South Eastern Coalfields and Mahanadi Coalfields, to the public.
This kind of first public share sale is called an IPO.
The company wants both IPOs completed by the end of the current financial year.
The exact dates are not fixed because they depend on the stock market and government instructions.
Mahanadi Coalfields’ IPO could be worth around Rs 10,000 crore.
South Eastern Coalfields’ IPO could be worth Rs 8,000-Rs 10,000 crore.
The two companies together produce about half of Coal India’s coal.
Coal India plans to complete IPOs for South Eastern Coalfields Limited and Mahanadi Coalfields Limited by the end of the current financial year.
Chairman and Managing Director B Sairam said the launch dates will depend on market conditions and government directives.
Coal India’s board approved selling up to 25% of each subsidiary through offers for sale, plus fresh SECL equity of up to 10% of its post-issue capital.
MCL’s proposed IPO may be worth about Rs 10,000 crore, while SECL’s is expected at Rs 8,000-Rs 10,000 crore based on market expectations.
The listings follow the public offerings of Bharat Coking Coal Limited and Central Mine Planning and Design Institute Limited earlier this year; SECL and MCL together produce about half of Coal India’s output.
- Who
- Coal India Limited, its Chairman and Managing Director B Sairam, and subsidiaries South Eastern Coalfields Limited and Mahanadi Coalfields Limited.
- What
- Coal India plans IPOs for SECL and MCL, involving stake sales and fresh equity for SECL.
- Where
- The announcement was made during a shareholder and stakeholder interaction linked to Coal India’s annual general meeting in Kolkata.
- When
- The announcement was made on Monday; the IPOs are planned for completion by the end of the current financial year.
- Why
- Coal India intends to divest stakes in the subsidiaries and list them on public markets; the company has described such listings as a way to unlock subsidiary value and broaden access to capital markets.
Key facts
- Planned completion
- By the end of the current financial year
- MCL proposed issue
- Around Rs 10,000 crore; the final size and structure will be decided closer to launch
- SECL expected issue
- Rs 8,000-Rs 10,000 crore, according to market expectations
- Proposed stake sales
- Up to 25% equity in each of SECL and MCL through offers for sale
- Fresh SECL equity
- Up to 10% of SECL’s post-issue paid-up capital
- Production share
- SECL and MCL together account for about half of Coal India’s total output
- FY26 performance
- MCL produced 218.31 million tonnes and reported Rs 10,698 crore profit after tax; SECL produced 176.29 million tonnes and reported Rs 4,755 crore profit after tax
- Earlier listings
- Coal India’s Bharat Coking Coal Limited and Central Mine Planning and Design Institute Limited were publicly listed earlier this year
Quotes
B Sairam
Chairman and managing director of Coal India
“Regarding initial public offerings (IPOs) of South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Limited (MCL), we plan to complete them by the year-end positively. Its IPO will be completed in this current financial year only. The date will depend upon market conditions and government directives, etc”
freepressjournal.in
thehansindia.com
Sources
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