South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd, has initiated the process of appointing investment banks for an initial public offering, according to a document reviewed by Mint.
SECL’s proposed IPO, which is expected to be a mix of a fresh issue of shares and an offer for sale by the parent company, is likely to be worth around ₹8,000 crore to ₹10,000 crore, two people aware of the matter told Mint. The coal producer is seeking four to five bookrunning lead managers to structure and manage the public issue.
Coal India plans to divest up to 25% of its shareholding in the subsidiary over time, the document showed. The initial tranche will comprise an offer for sale of at least 10% of Coal India’s holdings alongside a potential fresh equity issuance of about 5% by SECL.
Prior to the offering, the company’s equity shares, which carry a face value of ₹1,000 apiece, will be split into shares of a lower face value.
SECL is among the highest coal-producing subsidiary companies of Coal India. Its 61 coal mines are spread across Chhattisgarh and Madhya Pradesh. The mines are divided into three groups: Central India coalfields, Korba coalfields and Mand Raigarh Coalfields.
The company produced 176.2 million tonnes of coal in FY26, registering a growth of 5.26%. SECL also operates a coal carbonization plant of Dankuni Coal Complex in West Bengal that was leased to it by Coal India. The plant produces coal gas, coke fines, coal fines, dehydrated tar and ammonium sulphates, among others.
Coal India did not immediately respond to Mint’s queries seeking comment on the planned IPO.
Mahanadi Coalfields
Mint reported on 4 August that Mahanadi Coalfields Ltd (MCL), another Coal India subsidiary, had appointed SBI Capital Markets, Axis Capital, IIFL Capital Services, IDBI Capital Markets and Bank of Baroda Capital Markets as merchant bankers for its proposed IPO of about ₹10,000 crore.
“Both the IPO processes will run simultaneously, with SECL expected to list a month or two after Mahanadi,” one person said on condition of anonymity.
Coal India had approved preliminary plans to partially sell stakes in two of its largest subsidiaries – SECL and MCL – as part of its broader subsidiary listing strategy. The listing plans followed an advisory from the ministry of coal, which asked Coal India to initiate concrete steps to facilitate the listing of its subsidiaries in the current financial year, Mint reported in December.