New Delhi: South Eastern Coalfields Limited (SECL), one of the largest and most profitable operating subsidiaries of Coal India Limited, is preparing for a potential public listing that could raise up to $800 million, or around ₹6,600 crore.
The company is targeting the filing of its Draft Red Herring Prospectus (DRHP) as early as December 2026, according to people familiar with the proposed transaction. However, the potential issue size and timeline are not final and could change depending on valuation, market conditions, regulatory approvals and the final transaction structure.
SECL has appointed ICICI Securities, SBI Capital Markets, Motilal Oswal Investment Advisors and IDBI Capital Markets & Securities as advisers for the proposed share sale.
The proposed listing is part of Coal India’s broader strategy to bring major subsidiaries to the stock market and unlock value from its operating businesses.
SECL IPO: Coal India Board Already Approved Disinvestment
The proposed SECL IPO has already received in-principle approval from Coal India’s board.
Coal India’s board first gave in-principle approval for SECL’s listing in December 2025. Later, at its meeting on March 23, 2026, the board approved the proposed disinvestment of up to 25% of Coal India’s equity stake in SECL through an Offer for Sale (OFS).
The March approval also provides for a fresh issue of equity shares by SECL of up to 10% of its post-issue paid-up equity share capital through an IPO and/or other permissible domestic-market routes.
The proposed transaction remains subject to:
- Regulatory approvals
- Completion of required formalities
- Finalisation of the offer structure
- Financing and other applicable arrangements
- Market conditions
Proposed SECL IPO Could Be Worth Around ₹6,600 Crore
The potential $800-million issue size, equivalent to approximately ₹6,600 crore at current exchange rates, would make the proposed SECL offering one of the larger coal-sector IPOs in India.
However, the reported figure should not be considered the final issue size.
The eventual size of the offering will depend on several factors, including:
- SECL’s valuation
- Equity dilution
- Market conditions
- Regulatory approvals
- Final offer structure
- Decisions by Coal India and the government
Greater clarity is expected once SECL files its DRHP with the Securities and Exchange Board of India (SEBI). The document will contain details of the proposed share sale, including the number of shares and offer structure.
SECL’s Production and Financial Scale
SECL’s size and operating performance are key factors behind the interest in its proposed listing.
The company operates coal mines across Chhattisgarh and Madhya Pradesh and has an operating footprint of around 60 mines, including 35 in Chhattisgarh and 25 in Madhya Pradesh.
According to FY26 figures cited in reports, SECL recorded:
- Coal production: 176.29 million tonnes
- Profit after tax: ₹4,755 crore
These figures underline the scale of the company within the Coal India group and provide the operating base for its proposed entry into the capital markets.
SECL Listing Part of Coal India’s Subsidiary IPO Strategy
The SECL IPO is part of a wider strategy by Coal India to separately list some of its major subsidiaries.
The strategy has already progressed with the market debuts of Bharat Coking Coal Limited (BCCL) and Central Mine Planning & Design Institute (CMPDI) earlier in 2026.
Meanwhile, Mahanadi Coalfields Limited (MCL) has also entered the IPO pipeline after moving towards the DRHP stage.
Coal India’s subsidiary-listing strategy is aimed at improving transparency, providing independent market valuations and unlocking value from individual businesses within the group.
Coal India Chairman and Managing Director B. Sairam has described subsidiary listings as an important step towards unlocking value, widening access to capital markets and strengthening Coal India’s position as a diversified listed public-sector enterprise.
SECL and MCL: Two Major Coal India Subsidiaries in IPO Pipeline
The significance of SECL’s proposed listing becomes clearer when compared with MCL, another major Coal India subsidiary.
MCL produced 218.31 million tonnes of coal in FY26 and reported a profit after tax of ₹10,698 crore, making it the largest-producing subsidiary within the Coal India group during the period.
SECL followed with:
- 176.29 million tonnes of coal production
- ₹4,755 crore profit after tax
Coal India has indicated that MCL and SECL are planned for listing during FY27, although the actual timing will depend on market conditions and government directions.
If both listings move forward, they could provide investors with separately traded benchmarks for some of Coal India’s largest operating businesses.
How the Proposed SECL Share Sale Could Work
The structure approved by Coal India’s board includes two potential components.
Offer for Sale by Coal India
Coal India may dilute up to 25% of its stake in SECL through an OFS. Under an OFS, proceeds from the shares sold would go to the selling shareholder, in this case Coal India.
Fresh Issue by SECL
SECL may also issue fresh equity equivalent to up to 10% of its post-issue paid-up equity share capital through an IPO and/or other permissible domestic-market routes.
Unlike an OFS, proceeds from a fresh issue would accrue to SECL and could provide capital directly to the subsidiary.
The eventual combination of the OFS and fresh issue will determine how much of the transaction represents value monetisation by Coal India and how much constitutes fresh capital raising by SECL.
What SECL Listing Means for Coal India’s Value-Unlocking Strategy
For years, the financial performance of major subsidiaries such as SECL and MCL has been reflected primarily through Coal India’s consolidated financial results.
Separate listings could change that structure by allowing investors to independently value individual operating businesses.
The proposed SECL listing therefore has implications beyond the IPO itself. A successful listing could provide another independently traded reference point for the value of Coal India’s subsidiaries and potentially strengthen the case for further listings within the group.
The government’s broader push has also focused on greater monetisation, transparency and market participation across Coal India’s subsidiary network.
Reports in December 2025 indicated that the government wanted Coal India’s subsidiaries to be progressively brought to the stock market by 2030.
December 2026 DRHP Filing Is the Next Key Milestone
The immediate milestone for SECL is the proposed December 2026 DRHP filing.
Until the preliminary offer document is filed, the reported $800 million issue size and December timeline remain proposed and subject to change.
SECL has appointed advisers and Coal India’s board has approved the broad disinvestment structure, but regulatory approvals, market conditions and other formalities will determine the final transaction.
If the current timeline progresses as planned, SECL could enter the capital markets before the end of FY27, marking another major step in Coal India’s subsidiary-listing programme.
About South Eastern Coalfields Limited (SECL)
South Eastern Coalfields Limited (SECL) is a major subsidiary of Coal India Limited and operates coal mines across Chhattisgarh and Madhya Pradesh. The company is one of Coal India’s largest coal-producing subsidiaries and supplies coal to key sectors of the Indian economy.
About Coal India Limited
Coal India Limited (CIL) is a Maharatna public sector enterprise under the Ministry of Coal, Government of India, and one of the world’s largest coal producers. Through its subsidiaries, CIL operates coal mines across several Indian states and supplies coal primarily to the power, steel and other industrial sectors.
