Coal India Ltd (CIL), India’s state-owned coal producer, is set to list two of its major subsidiaries , Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL), on stock exchanges, aiming to broaden the pipeline of public sector unit (PSU) initial public offerings (IPOs). The board has given in-principle approval, with final clearance pending regulatory and government approvals.
The move follows growing market interest in PSU IPOs, particularly after the buzz surrounding Bharat Coking Coal Ltd (BCCL), which is preparing for an IPO of around ₹1,300 crore. Analysts see Coal India’s plan as part of a broader government push to deepen capital markets, increase transparency, and unlock the intrinsic value of public enterprises.
Both MCL and SECL are among Coal India’s most productive subsidiaries. MCL, based in Odisha, is a significant contributor to national coal output, while SECL, headquartered in Chhattisgarh, operates extensive mining projects across central India. Both subsidiaries have delivered strong revenues and profits, making them attractive for public investment.
The board approval was passed via a circular resolution and will now be submitted to the Ministry of Coal and the Department of Investment and Public Asset Management (DIPAM) for final approvals. Market reaction has been positive, with Coal India shares rising in trading after the announcement.
Experts believe listing these subsidiaries could enhance shareholder returns by providing clearer valuations for the high-performing units. The move is also expected to energize the primary market for 2026, offering investors more opportunities to participate in government-linked offerings.
This development signals a strategic push by Coal India and the government to leverage market mechanisms for growth, while also giving investors a chance to own stakes in profitable PSU companies. As BCCL’s IPO proceeds, MCL and SECL listings could follow, reinforcing investor confidence in public sector offerings.