Coal India's Board Approves Listing Two Subsidiaries after Govt Push, Shares Jump 3%

The board of state-run coal mining corporation, Coal India, has given in-principle approval to list two of its subsidiaries, Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). The move is part of the government’s broader plan to unlock value from public sector companies.

After the announcement, shares of Coal India rose by 3% to ₹412.40 during the morning trade on December 24. This also marked the stock’s highest level in the last seven months.

Notably, the company's stock has performed well recently. It has gained nearly 7% in the past week and over 10% in the last month. The shares are up more than 6% so far in 2025 and have risen 91% over the past three years.

The approval comes shortly after the Ministry of Coal, on December 16, asked the PSU to take concrete steps toward listing the two subsidiaries in the financial year 2026-27 (FY27).

Coal India said it will now inform about the approval to the ministry, which will forward the proposal to the Department of Investment and Public Asset Management (DIPAM). Meanwhile, the listings will take place only after all required regulatory approvals are received.

SECL, a Miniratna public sector company, operates mainly in Chhattisgarh and Madhya Pradesh. It has 73 major coal projects approved with a total capacity of about 303 million tonnes per year. The company has received capital expenditure approval of ₹44,571 crore.

Currently, 30 projects are under execution, 38 have been completed, and five underground mines are operational. SECL produced 167.5 million tonnes of coal in FY25.

MCL was formed in 1992 after being separated from SECL and is headquartered in Sambalpur, Odisha. It was accorded Miniratna status in 2019. Both MCL and SECL have played a key role in Coal India’s production and profits, making them strong candidates for public listing.