Coal India Limited has received in principle approval from its board to pursue the partial disinvestment and separate listing of its two largest subsidiaries, South Eastern Coalfields Limited and Mahanadi Coalfields Limited, following a meeting on 23 March. The decision forms part of a broader government strategy to unlock the latent value of core assets and to provide a clearer valuation of each business unit. The company expects the move to enhance transparency and to create distinct investment propositions for market participants. The board authorised an Offer for Sale (OFS) of up to 25 per cent of Coal India’s stake in each subsidiary and approved a fresh equity issue for South Eastern Coalfields of up to 10 per cent of post issue capital, while Mahanadi Coalfields will proceed via an OFS of up to 25 per cent. Mahanadi Coalfields has recently crossed 200 million (mn) tonnes (t) of annual production, underscoring its position as the group’s top earner. The OFS will provide an exit route for the parent and the fresh issue will supply growth capital to the subsidiary. Analysts said that separate listings are likely to trigger a sum-of-the-parts (SOTP) re-rating as investors can value each mine operator on its standalone fundamentals, which may raise the combined market capitalisation of the group. Market trading in Coal India reacted positively with the share probing around Rs 475 amid renewed investor interest and with an attractive dividend yield relative to peers. Technical activity indicated immediate support at Rs 460 and a medium term target range of Rs 515–Rs 530 following the announcement. The proposal will be submitted to the Ministry of Coal and the Department of Investment and Public Asset Management for final approval and the filing of the Draft Red Herring Prospectus will disclose precise valuations and issuance details. Investors are advised to monitor the DRHP for allocation of shares and timetable as the process progresses. Overall, the step is expected to unlock shareholder value while enabling the subsidiaries to access capital markets for independent expansion.