Coal India clears 25% SECL, MCL stake sale in 2026

Board gives in-principle nod for two large subsidiaries

Coal India Ltd (CIL) has given in-principle approval to divest up to 25% of its equity shareholding each in South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL). The divestment is planned through an offer for sale (OFS) route, in one or more tranches. The company disclosed the decision through notices to the stock exchanges. SECL and MCL are described as among Coal India’s largest and most profitable arms, and they contribute significantly to the parent’s overall output. The proposed transactions form part of the broader plan to list subsidiaries while retaining majority control.

SECL plan includes a fresh issue of up to 10%

Alongside the OFS in SECL, Coal India also approved issuing fresh equity shares in SECL of up to 10% of SECL’s post-issue paid-up equity share capital. The company said this could be done in one or more tranches through an initial public offer (IPO) or other permissible routes in the domestic market. Put together, the OFS portion of up to 25% and the fresh issue of up to 10% imply an aggregate of up to 35% of SECL’s post-issue paid-up equity capital being offered via market routes, as disclosed in the filing. The company has framed the decision as a step that could support resource mobilisation while keeping government control intact through majority ownership.

MCL divestment approved via OFS; listing options kept open

For MCL, the board granted in-principle approval for divesting up to 25% of equity shares held by Coal India. The stated mechanism is an OFS in one or more tranches, and Coal India also referenced an IPO or other market routes as permissible ways to execute the divestment in the domestic market. The company’s disclosures indicate flexibility on structure, with execution dependent on approvals and readiness for a public offering. Coal India has also linked the move to its phased approach towards public market participation for key subsidiaries.

Earlier listing approval and the regulatory path ahead

Coal India said it had already given in-principle approval for the listing of SECL and MCL on December 23, which was notified to the bourses. The company added that the divestment approval will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM). The proposed listing of SECL remains subject to receipt of requisite regulatory approvals and completion of necessary formalities. Separately, the proposed transaction for MCL was also described as subject to necessary approvals, including regulatory clearances and government authorisations. Timelines were not confirmed, and the company’s statements emphasised process and approvals over a fixed schedule.

What Coal India said in its filings

In its BSE filing, Coal India stated that the board meeting held on 23.03.2026 considered and approved the in-principle proposals. The disclosures specify the OFS route for divestment and the possibility of executing it in one or multiple tranches. For SECL, the filing also lays out the fresh issue component of up to 10% of post-issue capital. For MCL, the filing similarly highlights divestment of up to 25% via OFS, along with IPO or other permissible market routes. These are approvals at the principle stage, with subsequent steps dependent on clearances and completion of formalities.

Stock reaction: Coal India shares slip on the day

Following the disclosures, Coal India shares were reported to have slipped up to 3% to ₹441.25 apiece on the NSE on Tuesday, March 24. Another update cited the stock trading at ₹440.80 at 10:25 AM on March 24, 2026, down 3.17% from the previous close. The reported move reflects a market response to the announcement, although the filings themselves focus on approvals, structure, and process rather than valuation or timing. No offer size or pricing details were announced for SECL or MCL.

Financial snapshot disclosed for MCL

One of the disclosures in the provided material included financial figures for MCL. Mahanadi Coalfields Limited was reported to have FY24 revenue of ₹31,076.88 crore and net income of ₹10,176.35 crore. These figures were presented in the context of MCL being a significant asset within Coal India’s portfolio. Beyond these numbers, the company’s communications in the article focus on the share sale framework and the approvals process.

Strategic context: disinvestment push and diversification plans

The move aligns with the government’s stated push to deepen capital markets through public listings of state-owned enterprises while retaining majority control. For Coal India, the stake sale was linked to raising resources for diversification, including investments in clean energy and coal gasification projects, while coal continues to anchor India’s energy mix as described in the report. In a separate filing cited in the material, Coal India also approved incorporation of an Intermediate Holding Company (IHC) in Singapore to explore overseas opportunities in critical minerals asset acquisition. The company also approved closure of MJSJ Coal Ltd, a subsidiary of MCL and step-down subsidiary of Coal India.

Key facts table

What to watch next

The next steps depend on clearances and procedural progress through the Ministry of Coal and DIPAM, along with regulatory approvals referenced in the disclosures. Coal India has not provided an execution timeline, and the transaction design allows for one or more tranches. Investors will likely track further filings for details on issue structure, sequencing between SECL and MCL, and any additional conditions. Separately, updates on the Singapore intermediate holding company plan and the closure of MJSJ Coal Ltd could offer more clarity on how Coal India is organising its portfolio alongside the listing programme.