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Coal India Shares Hit 7-Month High as Board Approves Listing of Two Key Subsidiaries

Coal India shares jumped about 3% to a seven-month high after its board granted in-principle approval to list subsidiaries Mahanadi Coalfields Limited and South Eastern Coalfields Limited. The move aligns with Ministry of Coal advice to list subsidiaries by FY27 and has fueled a six-session rally. SECL, a Mini Ratna PSU, has a robust pipeline including 73 approved projects with a capacity of 30.28 crore tonnes annually. This development follows recent momentum from reports of another subsidiary, Bharat Coking Coal, considering an IPO.

Key Points: Coal India Stock Rises on Subsidiary Listing Approval

  • Board approves listing MCL & SECL
  • Stock up 3% to 7-month high
  • SECL has 73 major coal projects
  • Follows ministry advice for FY27 listings
2 min read

Coal India shares jump to 7-month high as board clears listing of MCL and SECL

Coal India shares surged 3% after board approved listing MCL and SECL. Learn about the rally, project details, and investor impact.

"The proposed listings of MCL and SECL are subject to various regulatory approvals. – Coal India Exchange Filing"

Mumbai, Dec 24

Coal India shares rose about 3 per cent on Wednesday after the company's board gave in-principle approval to list two of its subsidiaries -- Mahanadi Coalfields Limited and South Eastern Coalfields Limited.

The positive development boosted investor sentiment around the PSU stock.

In morning trade on Wednesday, Coal India shares climbed to Rs 412.40 apiece, marking their highest level in the last seven months.

With this move, the stock extended its rally for the sixth straight trading session.

The company informed exchanges late on December 23 that the proposed listings of MCL and SECL are subject to various regulatory approvals.

This announcement followed advice from the Ministry of Coal on December 16, which had asked Coal India to take concrete steps to ensure the listing of its subsidiaries in the financial year 2026-27.

South Eastern Coalfields Limited is a Mini Ratna public sector enterprise with a strong project pipeline.

So far, 73 major coal projects have been approved for SECL, with a total capacity of 30.28 crore tonnes per annum and sanctioned capital expenditure of Rs 44,571 crore.

Out of these, 30 projects are currently under implementation, 38 have been completed, and five underground blocks are operating as existing mines.

In the financial year 2024-25, SECL produced 16.75 crore tonnes of coal. Its coal reserves are spread across Chhattisgarh and Madhya Pradesh.

Mahanadi Coalfields Limited was carved out of SECL in 1992 and is headquartered in Sambalpur, Odisha.

The company received its Miniratna status in 2019 and is one of Coal India's key subsidiaries.

Coal India shares had already gained momentum a day earlier, rising nearly 4 per cent to close at Rs 400.65 on Tuesday.

The jump came after media reports suggested that another subsidiary, Bharat Coking Coal Limited (BCCL), is planning to launch an initial public offering soon.

- IANS

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Reader Comments

P
Priya S
While this is positive for investors, I hope the government and Coal India ensure that the interests of the employees in these subsidiaries are fully protected during the listing process. Job security and fair valuation are crucial.
R
Rohit P
Finally some action! The Ministry of Coal had to push them to take concrete steps. PSUs often move too slowly. This listing can bring in fresh capital for expansion, especially for those 30 projects under implementation. Good for the energy sector.
S
Sarah B
Interesting development. As an observer of Indian markets, it's smart to monetize these assets. The sanctioned capex of over ₹44,000 crore shows the scale. Hope the regulatory approvals come through smoothly for FY27.
V
Vikram M
This is good, but let's not forget the environmental angle. MCL and SECL operate in Chhattisgarh, MP, and Odisha. While focusing on profits and listings, the company must also invest heavily in sustainable mining and community development. The "how" matters as much as the "how much".
K
Karthik V
BCCL IPO news also helped the rally! Looks like a complete overhaul of Coal India's structure. Small investors should get a fair chance in these IPOs, not just the big funds. This can be a wealth creator for the middle class if priced right. 🤞

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