CIL to list coal subsidiaries SECL, MCL by fiscal year-end

Coal India Ltd (CIL) will move ahead with initial public offerings (IPOs) of South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL) before March 31, 2024, the company's Chairman and Managing Director B Sairam announced on Monday.

Addressing shareholders and stakeholders, Sairam said the timing of the dual listings would remain contingent on prevailing market conditions and directions from the government. "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," he stated.

CIL's board granted in-principle approval in March for divesting up to 25 per cent equity in each subsidiary through an offer for sale (OFS). The move also permits SECL to issue fresh equity shares equivalent to 10 per cent of its paid-up capital. The listings form part of New Delhi's broader privatisation framework aimed at unlocking value in state enterprises while maintaining government control.

Both SECL and MCL rank among India's largest coal producers by output and reserves. Their public market debuts are expected to enhance operational efficiency and provide access to capital markets for expansion and modernisation initiatives. The IPOs will also improve market transparency and corporate governance standards across CIL's operations.