Dalal Street is buzzing with the potential for more Public Sector Undertaking (PSU) Initial Public Offerings (IPOs), with Coal India Ltd (CIL) potentially listing two more of its subsidiaries. This follows reports that Bharat Coking Coal Limited (BCCL), another subsidiary of Coal India, is preparing to launch its IPO soon. The CIL board has granted in-principle approval for listing Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). The Ministry of Coal has directed Coal India to take steps to list select subsidiaries in the financial year 2026-27.

BCCL IPO Details

The IPO of Bharat Coking Coal (BCCL) is expected to be an offer for sale (OFS), with Coal India planning to dilute approximately 10% of its equity stake in the subsidiary. The issue size is estimated to be around ₹1,300 crore. Since no fresh shares will be issued, the entire proceeds from the IPO will go to Coal India, and not BCCL. The sale of shares would involve the sale of nearly 46.57 crore equity shares.

The market regulator SEBI, cleared BCCL's draft red herring prospectus (DRHP) in September. The IPO is expected to include allocations for Qualified Institutional Buyers (QIBs), capped at 50% of the offer. Up to 60% of this portion will be allocated to anchor investors on a discretionary basis, with one-third of the anchor portion reserved for domestic mutual funds.

MCL and SECL IPOs

The Coal India board has cleared the way for IPOs of two more of its wholly-owned subsidiaries, Mahanadi Coalfields (MCL) and South-Eastern Coalfields (SECL). The CIL board has given in-principle approval for the listing of SECL, and the same shall be communicated to the ministry of coal for onward submission to the department of investment and public asset management (DIPAM). In a similar communication, CIL informed exchanges about the MCL listing as well.

In terms of coal production, MCL is one of the leading subsidiaries of CIL, with 225 million tonnes of production, and it achieved a record dispatch of 210 million tonnes in 2024-25. The company posted a revenue of Rs 36, 606 crore with a profit after tax (PAT) of Rs 10, 823 crore. It has a net worth of Rs 18, 278 crore. SECL produces 167 million tonne coal, with an underground contribution of over 11 million tonne. The total revenue was Rs 35,871 crore in 2024-25, with a PAT of Rs 4,648 crore. It has a net worth of Rs 16,870 crore.

Market Reaction

Shares of Coal India surged nearly 4 percent following the announcements, closing at Rs 400.65. The stock is trading just 4% away from its peak of ₹417.25, hit in May 2025.

The IPO plans follow BCCL's maiden dividend payout of Rs 44.43 crore to Coal India, a development that investors see as an indicator of improving cash flows and financial discipline at the subsidiary level.