Coal India board approves up to 35 divestment in SECL Mahanadi Coalfields

New Delhi, Mar 23 (PTI) The Coal India board on Monday gave in-principle nod for divesting up to 25 per cent of its equity stake in subsidiary South Eastern Coalfields Ltd (SECL) through Offer for Sale (OFS), alongside a fresh issuance of up to 10 per cent equity through initial public offer or other market routes.
    The decision was taken at the CIL board meeting held on Monday.
    The proposed divestment and fresh issue, aggregating up to 35 per cent of SECL's post-issue paid-up equity capital, will be executed in one or more tranches in the domestic market.
    "Further, the Board of CIL, at its meeting held on 23.03.2026, has inter alia, accorded in-principle approval for divestment of up to 25 per cent of equity shares held by Coal India Limited (CIL) in SECL through Offer for Sale (OFS), along with issuance of fresh equity shares of SECL aggregating up to 10 per cent of the post issue paid-up equity share capital, in one or more tranches, through Initial Public Offer (IPO) and/or other permissible market routes in the domestic market," Coal India said in a filing to BSE.
    In a separate filing, the company said that the board granted in-principle approval for divesting up to 25 per cent of its equity stake in Mahanadi Coalfields Limited (MCL) through Offer for Sale (OFS) in one or more tranches.
     The divestment will be executed via Initial Public Offering (IPO) or other permissible market routes in the domestic market.
     In another filing, the company said that the CIL board also approved the incorporation of an Intermediate Holding Company (IHC) in Singapore to explore overseas opportunities in critical minerals asset acquisition.
     SECL is amongst the highest coal-producing subsidiary companies of CIL. The coal mines of SECL are spread across two states, namely Chhattisgarh and Madhya Pradesh.
     SECL operates 60 coal mines, of which 35 are in Chhattisgarh State, while the remaining 25 are in Madhya Pradesh. And of these 60 coal mines, 40 mines are worked by the underground method of mining, while the remaining 20 are Opencast mines.
     Coal India accounts for over 80 per cent of domestic coal production.

(This story has not been edited by THE WEEK and is auto-generated from PTI)