Sector: Coal Mining and Energy | Proposed Mainboard IPO
South Eastern Coalfields Ltd. (SECL), a wholly owned subsidiary of Coal India Ltd., has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a proposed initial public offering. The proposed issue will comprise an Offer for Sale of up to 66.81 crore equity shares by Coal India, representing approximately 10% of SECL’s existing equity capital. Following the proposed divestment, Coal India’s holding in the subsidiary is expected to reduce to 90%, provided the entire offer is completed.
According to the draft documents, SECL reported revenue of Rs. 32,956.52 crore and net profit of Rs. 4,754.59 crore in FY26. The company is among India’s major coal producers, with operations primarily concentrated in Chhattisgarh and Madhya Pradesh. Since the proposed IPO is entirely an OFS, the proceeds will accrue to Coal India rather than SECL. The proposed listing will provide investors an opportunity to participate directly in the coal subsidiary, subject to the final offer structure, valuation and regulatory disclosures. The issue opening date and price band are yet to be announced.
Source: Business Standard / Economic Times
