South Eastern Coalfields, Mahanadi Coalfields IPO By Year-End: CIL CMD

Coal India Ltd (CIL) Chairman and Managing Director B Sairam on Monday said the initial public offerings (IPOs) of two of its largest subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), will be completed within the current financial year.

Responding to questions from shareholders and stakeholders during an interaction, Sairam said the exact timeline would depend on market conditions and government directives.

"... regarding the IPO of SECL and Mahanadi Coalfields Limited. We plan to complete the IPO by the year-end positively. Its IPO will be completed in this current financial year only. The exact month and date will depend upon the market conditions and the government directives, etc," Sairam said.

CIL's board had in March this year accorded in-principle approval for divestment of up to 25% equity stake each in SECL and MCL through an offer for sale (OFS), along with issuance of fresh equity shares by SECL of up to 10% of its post-issue paid-up capital through the IPO route.

The listing of the two subsidiaries, which are among the largest coal producers under CIL accounting for about half of the company's total output, follows the completed public listings of two other CIL arms -- Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute Ltd (CMPDI) -- earlier this year.

Earlier, addressing CIL's 52nd Annual General Meeting, Sairam said BCCL was listed in January following an offer for sale of a 10% stake, which received subscription of nearly 147 times, while CMPDI was listed on March 30, 2026 following a 15% stake sale. He described the two listings as an important step in unlocking value from CIL's subsidiaries and broadening their access to capital markets.

MCL and SECL were also CIL's top-performing subsidiaries in FY26, with MCL producing 218.31 million tonnes of coal and posting the highest profit after tax among subsidiaries at ₹10,698 crore, while SECL produced 176.29 million tonnes and reported a profit after tax of ₹4,755 crore, according to CIL's annual report.

Sairam also highlighted the foundation stone laid on June 20, 2026, for India's first commercial coal gasification project, being developed by Bharat Coal Gasification and Chemicals Ltd, CIL's joint venture with BHEL.

The project entails an investment of around ₹25,000 crore and will have an annual capacity of 6.6 lakh tonnes of ammonium nitrate.

On the current financial year's performance, Sairam said momentum has been encouraging on the offtake and revenue front. For the quarter ended June 30, 2026, offtake rose 4% year-on-year, and revenue from operations grew 8% to ₹46,255 crore on firmer realisations, with profit after tax improving marginally to ₹8,850 crore. Offtake for July 2026 grew 18% over the corresponding month last year, while cumulative e-auction allocations for April-July 2026 commanded an average premium of 43% over notified prices.

On diversification, Sairam said CIL commissioned its first 100 MW solar plant at Patan, Gujarat on May 4, 2026 and commissioned 200 MW of its 300 MW Khavda solar project on July 8, 2026, recording its first-ever renewable energy sale revenue of ₹5.68 crore in the first quarter of this financial year.

The company has set a target of 9.5 GW of renewable capacity by FY30. CIL also commissioned an additional 2 million tonne per annum coal washery at BCCL, taking its total washing capacity to 17.35 MTPA, and commenced production from its first revenue-sharing mine developer and operator (MDO) project at the ASGKCC mine in Katras.

On critical minerals and new areas, Sairam said CIL secured the Kawalapur Rare Earth Elements composite licence block in Maharashtra in January 2026, taking its total critical mineral blocks to five, and secured the Gadadharpur iron ore block in Odisha, estimated at 288 million tonnes, marking the company's first entry into iron ore mining.

CIL has also incorporated a wholly-owned subsidiary, CIL Global Pte Ltd, in Singapore on August 24, 2026, to facilitate overseas critical mineral asset acquisitions, besides a joint venture with Damodar Valley Corporation to build a 1,600 MW thermal power project at Chandrapura.