Coal India’s Arm Files IPO Papers With Sebi; Promoter To Offload Shares

New Delhi: South Eastern Coalfields Ltd (SECL), an arm of Coal India Ltd, has filed preliminary papers with markets regulator Sebi for its Initial Public Offering (IPO).

The proposed IPO is entirely an Offer For Sale (OFS) of up to 66.81 crore equity shares by its promoter Coal India with no fresh issue component, according to the Draft Red Herring Prospectus (DRHP) dated November 1.

Since the issue is entirely an OFS, SECL will not receive any proceeds from the offering, with the entire proceeds going to Coal India.

Incorporated in 1985 and headquartered in Bilaspur, Chhattisgarh, SECL is among India’s largest coal producers.

It produced 176.29 million tonnes of coal in FY26, accounting for 16.94 per cent of the country’s total coal production, DRHP said citing a Crisil report.

It is the second-largest coal-producing subsidiary of Coal India, contributing 22.95 per cent to the parent company’s total production in FY26.

SECL’s coal production increased 5.25 per cent to 176.29 million tonnes in FY26 from 167.49 million tonnes in the preceding fiscal.

The company was accorded Miniratna Category-I status in March 2007 and completed 40 years of coal mining operations in 2025.

As of April 1, 2026, SECL had total coal geological resources of about 47.55 billion tonnes, accounting for around 11.50 per cent of India’s total coal geological resources.

Its audited coal reserves stood at 4.61 billion tonnes, sufficient to sustain production for around 26 years at FY26 levels, according to the draft papers.

Its Gevra and Kusmunda opencast mines in Chhattisgarh’s Korba coalfield are among the world’s largest coal mines.

As of September 30, 2026, the company operated 53 producing mines, comprising 19 opencast and 34 underground mines, across 13 operating areas in the Korba, Mand-Raigarh and Central India coalfields.

Opencast mines accounted for 93.64 per cent of its total coal production in FY26.

On the financial front, SECL reported a 37.6 per cent increase in revenue from operations to Rs 16,593.7 crore for the six months ended September 30, 2026, compared with Rs 15,090.2 crore in the year-ago period.

Its net profit nearly doubled to Rs 2,174.3 crore during the period from Rs 1,140.9 crore a year earlier.

For FY26, revenue from operations rose to Rs 32,956.5 crore from Rs 29,998.3 crore in FY25, while net profit increased to Rs 4,754.5 crore from Rs 4,540.4 crore.

In September, Mahanadi Coalfields Ltd (MCL) filed preliminary papers with Sebi for an IPO through which its promoter Coal India Ltd will sell a 10 per cent stake.

Before this, Bharat Coking Coal Ltd (BCCL), an arm of Coal India, floated its maiden public offering earlier this year.

SBI Capital Markets, ICICI Securities, IDBI Capital Markets & Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, while KFin Technologies is the registrar.

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