Coal India board okays SECL, MCL stake sale

Synopsis

Coal India's board has approved the divestment of up to 25% equity in SECL and MCL through an offer for sale. The company will also pursue an IPO for SECL, aiming to raise resources for diversification into clean energy and coal gasification projects.

New Delhi: The board of Coal India Ltd on Monday gave in-principle approval for divestment of up to 25% of equity shares held by it each in South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL) through 'offer for sale'.

It will also issue fresh equity shares of SECL up to 10% of the post issue paid-up equity share capital, in one or more tranches, through an initial public offer (IPO) or other routes in the domestic market, the company said in a notice to the stock exchanges.

The state-owned miner had given in-principle approval for the listing of SECL and MCL on December 23, which was notified to the bourses.

The approval for the divestment will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management, the company said.

The proposed listing of SECL remains subject to receipt of requisite regulatory approvals and completion of necessary formalities.

The in-principle approval for divestment of equity shares in MCL is through 'offer for sale' in one or more tranches, through an IPO or other market routes.

SECL and MCL are among Coal India's largest and most profitable arms, contributing significantly to its overall output.

The move aligns with the government's broader push to deepen capital markets through public listings of state-owned enterprises while retaining majority control.

For Coal India, the stake sale could help raise resources for diversification, including investments in clean energy and coal gasification projects, even as coal continues to anchor India's energy mix.

The company's board also approved to close MJSJ Coal Ltd, a subsidiary of MCL and step-down subsidiary of Coal India.

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