Coal India to Sell 25% Stake in Two Major Units Through IPOs
State-run Coal India announced on March 24 that it will sell up to 25% each in its South Eastern Coalfields (SECL) and Mahanadi Coalfields (MCL) units through initial public offerings or other routes, marking a major divestment initiative.
Key Points
- Coal India to sell up to 25% stake in SECL and MCL through IPOs or other routes
- SECL to also issue fresh shares worth up to 10% of post-issue share capital
- Two units produced 392 million tonnes of coal in FY2024-25, accounting for 74% of India's total coal production
- This is part of India's broader disinvestment strategy; CMPDI IPO open for subscription, BCCL already listed in January
Full Details
Coal India Limited, the world's largest coal producer, has received board approval to list its two largest subsidiaries. The company will sell up to 25% stake in both South Eastern Coalfields (SECL) and Mahanadi Coalfields (MCL) through IPOs or alternative routes, with SECL also issuing new shares worth up to 10% of post-issue share capital. These two units together produced approximately 392 million tonnes of coal in fiscal 2024-2025, representing about half of Coal India's total production and roughly 74% of India's total coal output. The plan, approved in December 2025, is part of India's broader disinvestment strategy. The IPO of Central Mine Planning & Design Institute (CMPDI), another Coal India unit, is already open for subscriptions this week, while Bharat Coking Coal (BCCL) went public in January 2026.
Why It Matters
This divestment represents India's largest coal sector privatization effort and could attract significant domestic and foreign investor interest, providing fresh capital to equity markets while reducing government stake in the critical energy sector.
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