Shares of Coal India (CIL) are expected to capture attention on Tuesday, March 24, following a significant announcement by the Maharatna company. On March 23, CIL’s board gave in-principle approval for the divestment of up to 25% of its stake in its subsidiary, South Eastern Coalfields Ltd (SECL), through an Offer for Sale (OFS). Additionally, a fresh issuance of up to 10% equity through an Initial Public Offering (IPO) or other market routes is planned. This proposed divestment, totaling up to 35% of SECL’s post-issue paid-up equity capital, will be carried out in tranches within the domestic market. The move aligns with ongoing restructuring efforts, as CIL also approved the divestment of its stake in Mahanadi Coalfields Limited (MCL) and plans for an Intermediate Holding Company (IHC) in Singapore to explore overseas mineral acquisitions.
Coal India’s Divestment Strategy Overview
Key Event
Details
Company
Coal India Limited (CIL)
Divestment Plan
Up to 25% stake in South Eastern Coalfields Ltd (SECL) through Offer for Sale (OFS)
Additional Issue
Issuance of up to 10% fresh equity in SECL via IPO or other market routes
Total Equity Affected
35% of SECL’s post-issue paid-up equity capital
Execution Method
Multiple tranches in the domestic market
Approval Date
March 23, 2026
Approval Body
CIL Board
Mahanadi Coalfields Ltd (MCL) Stake Divestment
Company
Mahanadi Coalfields Limited (MCL)
Stake Divestment
Up to 25% of CIL’s equity stake in MCL via Offer for Sale (OFS)
Execution Method
IPO or other permissible market routes in tranches
Approval Date
March 23, 2026
Approval Body
CIL Board
Incorporation of Intermediate Holding Company (IHC) in Singapore
Key Event
Details
New Entity
Intermediate Holding Company (IHC) in Singapore
Purpose
To explore overseas opportunities for acquiring critical mineral assets
Approval Date
March 23, 2026
Approval Body
CIL Board
SECL Overview: Key Data
Attribute
Details
Subsidiary of CIL
South Eastern Coalfields Ltd (SECL)
Geographical Operations
Mines in Chhattisgarh (35) and Madhya Pradesh (25)
Total Mines
60
Mining Method
40 underground mines, 20 opencast mines
Coal Production Rank
Among the highest coal-producing subsidiaries of CIL
CIL’s Other Subsidiaries and IPOs
Company
Details
Bharat Coking Coal Ltd (BCCL)
IPO launched in January 2026, listed at ₹45.21 with 96.56% premium
BCCL IPO Subscription
Subscribed 146.81 times, ₹1,071 crore raised
Central Mine Planning & Design Institute Ltd (CMPDIL)
