New Delhi, March 23 The Coal India board gave the go-ahead on Monday for divesting up to 25 per cent of its stake in the subsidiary, South Eastern Coalfields Ltd (SECL), through an Offer for Sale (OFS), along with a fresh issuance of up to 10 per cent equity through an initial public offer or other market routes.
The decision was made at the CIL board meeting held on Monday.
The proposed divestment and fresh issue, totaling 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 CIL Board, at its meeting held on 23.03.2026, has, inter alia, accorded in-principle approval for the 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 the 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 stake in Mahanadi Coalfields Limited (MCL) through Offer for Sale (OFS) in one or more tranches.
The divestment will be executed through an 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 the acquisition of critical mineral assets.
SECL is one of the largest coal-producing subsidiaries 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 the Chhattisgarh State, while the remaining 25 are in Madhya Pradesh. And of these 60 coal mines, 40 are worked using the underground mining method, while the remaining 20 are open-pit mines.
Coal India accounts for over 80 per cent of domestic coal production.
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