Coal India Board Clears Listing of Two Subsidiaries
Coal India Limited on Tuesday said its board has given in-principle approval to initiate the process for listing two of its wholly owned subsidiaries, South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL). The development put Coal India shares in focus during market trade as investors reacted to the potential value-unlocking move.
Board approval and next steps
The company informed exchanges that the approval allows it to begin preparatory work for the proposed listings. The process will include the appointment of advisers, valuation exercises, and regulatory clearances. Coal India clarified that the actual listing of SECL and MCL will be subject to approvals from the government and market regulator, along with prevailing market conditions.
Significance of SECL and MCL
SECL and MCL are among Coal India’s most significant subsidiaries in terms of production and reserves. SECL, headquartered in Chhattisgarh, is currently the largest coal-producing subsidiary of Coal India. MCL, based in Odisha, plays a critical role in supplying coal to power plants and other industries across eastern India. Together, the two subsidiaries account for a substantial share of Coal India’s overall output.
Market reaction
Coal India shares saw increased trading interest following the announcement, with investors viewing the move as a step toward improving transparency and unlocking shareholder value. Analysts have long expected Coal India to explore subsidiary listings as part of broader public sector reform and monetisation efforts.
Broader strategy
The proposed listings are aligned with Coal India’s longer-term strategy to streamline operations and enhance capital market participation of its subsidiaries. The company said further updates will be shared as the process advances.
