Coal India Shares Hit 7-Month High After Board Clears In-Principle Listing of Subsidiaries

Coal India Board Clears In-Principle Approval for Listing of Subsidiaries

Coal India Limited (CIL) has taken a key step towards unlocking value from its subsidiaries after its board accorded in-principle approval for the listing of South Eastern Coalfields Limited (SECL). The decision follows an Office Memorandum issued by the Ministry of Coal (MoC) on December 16, 2025, advising CIL to initiate concrete measures for listing its subsidiaries, including Mahanadi Coalfields Limited (MCL) and SECL, in the upcoming financial year.

The approval was granted through a circular resolution of the CIL Board and will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM). The proposed listings will be subject to completion of all necessary regulatory approvals.

Ministry of Coal’s Directive and Regulatory Path Ahead

The Ministry of Coal had, through its memorandum dated December 16, urged Coal India to expedite preparations for the listing of MCL and SECL in the next financial year, FY27. In its post-market disclosure on December 23, Coal India clarified that the proposed listings are still at a preliminary stage and would require multiple statutory and regulatory clearances before moving forward.

Overview of South Eastern Coalfields Limited (SECL)

South Eastern Coalfields Limited is a Mini Ratna public sector enterprise with a significant operational footprint across Chhattisgarh and Madhya Pradesh. As of now, 73 major coal projects have been approved for SECL, with an aggregate ultimate capacity of 30.28 crore tonnes per annum and a sanctioned capital outlay of ₹44,571 crore.

Out of these projects, 38 have been completed, 30 are currently under execution, while five underground blocks continue as existing mines. SECL reported coal production of 16.75 crore tonnes in FY25, underlining its importance within Coal India’s overall production framework.

Mahanadi Coalfields Limited: Key Subsidiary in Focus

Mahanadi Coalfields Limited was carved out of SECL in 1992 and is headquartered in Sambalpur, Odisha. The company was granted Miniratna status in 2019, reflecting its operational scale and financial performance. MCL is among the subsidiaries identified by the Ministry of Coal for listing in the coming years.

Other Coal India Subsidiaries

Apart from SECL and MCL, market reports have suggested that another Coal India subsidiary, Bharat Coking Coal Limited (BCCL), may be preparing for an initial public offering.

Coal India Share Price Performance

Coal India share price has delivered strong recent gains, rising nearly 7% over the past week. So far in 2025, the shares are up over 6.17%. On a longer-term basis, the stock has surged an impressive 187% over the past five years.