Coal India Subsidiary South Eastern Coalfields Files Draft Papers For IPO; Parent Plans To Sell Up To 66.81 Crore Shares

South Eastern Coalfields Ltd (SECL), one of Coal India’s largest subsidiaries, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed listing will give investors an opportunity to buy shares in one of the country’s major coal producers.

The IPO will be entirely an offer for sale (OFS) by Coal India. There will be no fresh issue of shares, according to the draft prospectus. The parent company plans to sell up to 668.1 million shares, or around 66.81 crore shares, through the offering.

The upcoming IPO could raise as much as $800 million, according to people familiar with the matter. The final issue size and other details will depend on the offer structure and pricing decided closer to the launch.

SBI Capital Markets, ICICI Securities Among IPO Managers

Coal India has appointed SBI Capital Markets, ICICI Securities, IDBI Capital Markets & Securities and Motilal Oswal Investment Advisors as the book-running lead managers for the IPO.

Since the issue is an OFS, the proceeds from the sale will go to Coal India, the selling shareholder, rather than South Eastern Coalfields. The subsidiary will not receive funds through a fresh share issue.

The filing is part of Coal India's plan to list some of its major subsidiaries on the stock exchanges. Mahanadi Coalfields Ltd, another Coal India unit, had also filed draft IPO papers with SEBI in September.

The proposed listing comes at a time when India's primary market continues to see companies prepare for public issues, looking to tap demand from domestic and institutional investors.

South Eastern Coalfields Operates 60 Coal Mines

South Eastern Coalfields is a major contributor to Coal India's mining operations. The company runs 60 coal mines across Chhattisgarh and Madhya Pradesh. Of these, 35 are located in Chhattisgarh and the remaining 25 in Madhya Pradesh.

Its financial performance also reflects the scale of its operations. For the financial year ended 31 March 2026, SECL reported revenue of around ₹33,000 crore and net income of ₹4,755 crore, according to the draft prospectus.

The company’s size and earnings make its proposed listing an important part of Coal India's broader plan to unlock value from its subsidiaries.

What The Proposed IPO Means For Coal India

The SECL IPO will allow Coal India to sell part of its holding in the subsidiary and bring the coal producer into the listed market. Since the issue is structured as an OFS, it will not bring fresh capital into SECL.

Investors will now watch for further details on the offer, including the issue size, price band, timeline and the number of shares Coal India eventually decides to sell. The listing of Mahanadi Coalfields and other subsidiaries may also remain on the radar as Coal India moves ahead with its divestment plans.

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