SECL IPO Plans Take Shape As Coal India Arm Eyes $800 Million Fundraise

SECL IPO 2026: South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd, is preparing for a potential initial public offering (IPO) that could raise up to $800 million, according to people familiar with the matter. The SECL IPO could see the Coal India arm file its draft prospectus as early as December, marking another major subsidiary listing being pursued by the state-run coal producer.

SECL has appointed ICICI Securities, SBI Capital Markets, Motilal Oswal Investment Advisors and IDBI Capital Markets & Securities as investment banks for the proposed IPO. The appointment of the four banks comes as Coal India advances plans to monetise its subsidiaries through stock-market listings.

The proposed SECL IPO size and timeline are not final and could change as discussions progress. The issue is expected to involve an offer for sale by parent Coal India, although the exact stake to be sold and other terms of the public issue have not yet been finalised. The potential SECL listing follows Coal India’s plans for the IPO of another major subsidiary, Mahanadi Coalfields.

SECL IPO Details

SECL is considering an IPO in Mumbai that could raise up to $800 million, according to people familiar with the discussions. The company has appointed four investment banks for the proposed transaction and is targeting a draft prospectus filing as early as December.

The proposed IPO is expected to involve an offer for sale by parent company Coal India. Since the discussions are at an early stage, the final issue size, stake to be sold and other terms of the offering have not been finalised.

Coal India and SECL have not publicly confirmed the proposed $800 million issue size. Representatives of Coal India, SECL and the appointed investment banks did not immediately respond to requests for comment, according to the report.

The proposed listing would add another large company to India's IPO pipeline and would further the government's broader plan to bring major public-sector subsidiaries to the stock market.

Coal India SECL IPO Plan And Mahanadi Coalfields Listing

The proposed SECL IPO follows Coal India's move to advance the listing of another major subsidiary, Mahanadi Coalfields Ltd (MCL). MCL filed its draft prospectus with the market regulator earlier this month for an offer for sale of up to 661.8 million shares by Coal India.

Coal India's board had earlier approved the listing of both MCL and SECL. The parent company has been considering around 25% equity dilution in the two subsidiaries, while SECL also has the right to issue new equity equivalent to up to 10% of its post-issue paid-up capital.

The proposed listings are part of Coal India's broader subsidiary monetisation programme. The company has already taken two other arms public in 2026. Bharat Coking Coal Ltd was listed in January after a ₹1,071 crore IPO, while Central Mine Planning and Design Institute Ltd made its market debut in March after raising ₹1,842 crore through an IPO. Both offerings involved offer-for-sale transactions by Coal India.

MCL and SECL are among Coal India's largest operating subsidiaries. MCL produced 218.31 million tonnes of coal in FY26, while SECL produced 176.29 million tonnes during the year. SECL reported a profit after tax of ₹4,755 crore in FY26.

SECL operates coal mines across Chhattisgarh and Madhya Pradesh. According to the latest reports, it has 60 operating mines, including 35 in Chhattisgarh and 25 in Madhya Pradesh.

The proposed SECL IPO remains subject to further discussions, regulatory filings and approvals. Until the company files its draft prospectus, the final issue size, stake-sale structure and IPO timeline are subject to change.

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