Coal India has filed the draft red herring prospectus (DRHP) for the proposed initial public offering of its wholly owned subsidiary South Eastern Coalfields Ltd (SECL), beginning the process of selling a 10 per cent stake in one of the country’s largest coal producers.
The proposed offer comprises 66.81 crore shares, representing 10 per cent of SECL’s existing equity. Coal India currently owns all 668.06 crore paid-up equity shares of the subsidiary. If the offer is completed in full, its holding will fall to 90 per cent.
The DRHP, dated November 1, was filed with the Securities and Exchange Board of India, the BSE and the National Stock Exchange, Coal India said in a regulatory filing on November 2. The issue is structured as an offer for sale, meaning the proceeds will go to Coal India and SECL will not receive funds from the transaction.
SECL said in the DRHP that a listing would enhance its visibility and brand image, while creating liquidity and a public market for its equity shares in India. The proposed IPO would bring a major coal-producing subsidiary, with a substantial earnings base and large operating footprint, to the stock market.
SECL reported revenue from operations of ₹32,956.52 crore and profit after tax of ₹4,754.59 crore in 2025-26. Its earnings before interest, taxes, depreciation and amortisation stood at ₹7,423.77 crore during the year.
The company produced 176.29 million tonnes of coal in FY26, accounting for 16.94 per cent of India’s total coal production. It was Coal India’s second-largest coal-producing subsidiary and contributed 22.95 per cent of the parent company’s output. SECL’s production increased from 167.49 million tonnes in FY25, the highest production growth among Coal India’s subsidiaries during that period.
SECL’s operations are concentrated in the Korba coalfield in Chhattisgarh. Its three major opencast mines — Gevra, Dipka and Kusmunda — produced about 126 million tonnes in FY26, or 71.48 per cent of the subsidiary’s total output. Together, the mines have an environmental clearance capacity of 172.5 million tonnes per annum.
The proposed listing comes as Coal India pursues a revised roadmap to produce one billion tonnes of coal. Under that plan, SECL is expected to contribute 245 million tonnes in FY30. The subsidiary has outlined production expansion through new mine development, capacity expansion, mine developer and operator-led projects, and improvements in coal evacuation infrastructure.
As of April 1, 2026, SECL had geological resources of about 47.55 billion tonnes, equivalent to approximately 11.5 per cent of India’s total coal geological resources. Around 11 billion tonnes of those resources had been projectised. Its audited coal reserves stood at 4.61 billion tonnes, which the DRHP estimated could support approximately 26 years of operations at its FY26 production level.
The next steps for the proposed IPO, including the issue size, pricing and timetable, will depend on the regulatory and offer process following the DRHP filing.
