Coal India IPO: Company to list two more subsidiaries MCL and SECL after announcing BCCL IPO

Synopsis: The share of Coal India is up by 3 percent after it reported IPO of its subsidiary, which is advised to CIL by the Ministry of Coal to roll out both IPO by the next financial year, and the details of the subsidiary businesses.

The share of this company is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of the company are the power and steel sectors, in focus after reports of IPO of its subsidiary companies.

With a market capitalization of Rs 2,50,700 crore, Coal India Ltd’s shares on Wednesday made a day high of Rs 412.40 per share, up by 3 percent from its previous day’s close price of Rs 400.35 per share. The share has given a return of 197 percent over the last five years. 

What happened

The Ministry of Coal has asked Coal India Limited (CIL) to move ahead with listing its subsidiaries. Acting on this, CIL’s Board has given in-principle approval to list Mahanadi Coalfields Limited (MCL), a wholly owned arm, and the proposal will now be sent to the Department of Investment and Public Asset Management (DIPAM).

The Board has also granted in-principle approval for the listing of another wholly owned subsidiary, South Eastern Coalfields Limited (SECL), following the same Ministry of Coal decision. These steps are part of CIL’s broader plan to bring key subsidiaries like MCL and SECL to the market in the coming financial year. The proposed in-principle listing of the two is subject to completion of various regulatory approvals. 

The company is in its advanced stage of coming up with the BCCL IPO, which the company is looking to roll out in the first half of the next financial year. They are looking to raise around Rs. 1,300 crore at the value of Rs. 13,000 crore, which will be a pure offer for sale

Business contribution of the subsidiaries: Mahanadi Coalfields (MCL), one of Coal India’s largest arms, produced 225 MT in FY25, with record dispatch of 210 MT. It earned Rs 36,606 crore revenue and Rs 10,823 crore PAT, largely from open-cast mines. In Q1 FY26, MCL produced 51.58 MT against a 52.5 MT target.

SECL produced 167 MT in FY25, including over 11 MT from underground mines. Revenue stood at Rs 35,871 crore with Rs 4,648 crore PAT and net worth of Rs 16,870 crore. IN Q1 FY26, output was 41.14 MT versus a 51.07 MT target.

About the company

Coal India Limited (CIL) the state-owned coal mining corporate, came into being in November 1975. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL, today is the single largest coal producer in the world and one of the largest corporate employers with manpower of 2,20,242 (as on 1st April, 2025).

Across eight Indian states, CIL operates in 85 mining areas, managing a total of 310 working mines, consisting of 129 underground, 168 opencast, and 13 mixed mines and contributes to 80percent  of total domestic coal production and 75percent  of total coal-based generation. CIL contributes to 55 percent  of total power generation and meets 40 percent  of the primary commercial energy requirements of the country. Operates Asia’s largest opencast coal mine at Gevra, SECL.

Financial performance, revenue declined by 3 percent to Rs 30,187 crore, corresponding to the same quarter in the last financial year. Accompanied by a decline in EBDIT by 22 percent YoY to Rs. 6,716 crore in Q2 FY26, and the Net profit of the company declined by 31 percent YoY to Rs. 4,263 crore in Q2 FY26.

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