After Mahanadi Coalfields, Coal India arm South Eastern Coalfields prepares to file IPO papers

South Eastern Coalfields Ltd. (SECL), a subsidiary of state-owned Coal India Ltd., is gearing up to launch its initial public offering (IPO), looking to raise up to $800 million, according to industry sources. The coal miner has reportedly appointed investment banks to advise on the proposed IPO and is targeting a draft prospectus filing as early as December.

SECL has selected ICICI Securities Ltd., SBI Capital Markets Ltd., Motilal Oswal Investment Advisors Pvt. and IDBI Capital Markets & Securities Ltd. as advisers for the proposed share sale, the sources said. Parent Coal India is expected to sell part of its stake in the proposed offering, they added.

In December 2025, the board of Coal India gave in-principle approval for the listing of SECL and Mahanadi Coalfields Ltd. (MCL), following a directive from the Ministry of Coal to initiate concrete steps towards their public listing.

In an office memorandum dated December 16, 2025, the Ministry of Coal asked Coal India to take steps towards listing MCL and SECL in the following financial year. The proposed IPO of SECL is part of that broader plan to bring additional Coal India subsidiaries to the public markets.

SECL’s coal mining operations

South Eastern Coalfields Ltd. (SECL) is a wholly owned subsidiary of Coal India Ltd., one of the world’s largest government-owned coal producers. It is among India’s largest coal-producing companies, with mining operations spread across Chhattisgarh and Madhya Pradesh.

As of April 1, 2022, SECL operated 67 coal mines, including 41 in Chhattisgarh and 26 in Madhya Pradesh. Of these, 46 were underground mines, while 21 were opencast mines.

Mahanadi Coalfields files IPO papers

SECL’s proposed IPO comes as Coal India steps up efforts to unlock value from its large operating subsidiaries. Earlier this month, another wholly owned subsidiary, Mahanadi Coalfields Ltd. (MCL), filed its draft IPO papers with the Securities and Exchange Board of India (Sebi).

Coal India has already taken two of its subsidiaries to the stock market this year. Bharat Coking Coal Ltd. (BCCL) was listed in January 2026 following its ₹1,071-crore IPO, while Central Mine Planning & Design Institute Ltd. (CMPDI) made its market debut in March after raising ₹1,842 crore through an IPO.

Both offerings were entirely structured as offer-for-sale (OFS) transactions by Coal India, enabling the parent company to monetise part of its holdings in the subsidiaries.

MCL’s proposed IPO is also structured as an OFS. The company has filed a Draft Red Herring Prospectus (DRHP) with Sebi for the sale of up to 661.84 million equity shares with a face value of ₹2 each. The entire stake on offer will be sold by Coal India, representing a 10% stake in MCL.

Since the issue does not include any fresh shares, MCL will not receive any proceeds from the offering, with the entire amount accruing to Coal India.

MCL is Coal India’s largest coal-producing subsidiary and one of India’s major coal miners. Primarily operating in Odisha, the company runs mines in the Talcher and Ib Valley coalfields. It produced 218.31 million tonnes of coal in FY26, accounting for around 22.4% of India’s non-coking coal production and about 28.4% of Coal India’s overall output.

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