Coal India Board Approves SECL And MCL IPOs With 25 per cent OFS

27 Mar 2026 CW Team

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..