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Informist, Monday, Aug. 31, 2026

 

By Avishek Rakshit

 

KOLKATA – State-owned Coal India Ltd. is planning to list two of its subsidiaries, Mahanadi Coalfields Ltd. and South Eastern Coalfields Ltd., in the current financial year, although the exact time and details of the listing are yet to be finalised, its Chairman and Managing Director B. Sairam said on Monday.

 

"We plan to hold the IPO (initial public offering) by year-end positively, which means all these IPOs will be completed within this current financial year only," Sairam told shareholders at the 52nd annual general meeting. "The exact month and date will depend upon the market conditions and the government directives etc."

 

The government, with over a 61% stake, is the largest shareholder in Coal India, and the two subsidiaries to be listed are wholly owned subsidiaries of Coal India. Hence, government approval is a prerequisite for listing of Mahanadi Coalfields and South Eastern Coalfields.

 

Among Coal India's eight mining subsidiaries, Mahanadi Coalfields remained the largest producer with production of 218.31 million tonnes in the last financial year, followed by South Eastern Coalfields with 176.29 million tonnes. 

 

Even as Mahanadi Coalfields remains the largest coal-producing subsidiary, its production performance has been the weakest among Coal India's subsidiaries lately. While Coal India's coal production fell 4.3% during Apr-Jul to 220.0 million tonnes, Mahanadi Coalfields' production in the same period declined 16.0% on year to 55.7 million tonnes. South Eastern Coalfields, however, reported 9.2% on-year growth to 55.6 million tonnes during Apr-Jul. 

 

Although South Eastern Coalfields is Coal India's largest revenue-earning subsidiary, Mahanadi Coalfields is the most profitable. During the year ended March, Mahanadi Coalfields reported revenue of INR 305.50 billion and profit of INR 106.98 billion. In the same financial year, South Eastern Coalfields reported revenue of INR 329.57 billion and profit of INR 47.55 billion. 

 

While Mahanadi Coalfields paid the highest dividend of INR 86 billion to Coal India in 2025-26 (Apr-Mar), South Eastern Coalfields paid the third-highest dividend of around INR 21 billion to Coal India. 

 

Sairam's comments follow two of its subsidiaries, Bharat Coking Coal Ltd. and Central Mine Planning and Design Institute Ltd., getting listed on the bourses towards the end of the last financial year. While Coal India offloaded a 10% stake in Bharat Coking Coal, it divested a 15% stake in Central Mine Planning and Design Institute.

 

Although Sairam did not detail the listing size, the stake Coal India plans to divest, or any other details, a section of Coal India's public shareholders, after the annual general meeting, said that the proposed initial public offering size of Mahanadi Coalfields could be in the range of INR 80 billion and INR 150 billion. 

 

A report from brokerage Angel One Ltd. said that the listing of Mahanadi Coalfields includes Coal India disinvesting its stake through an offer for sale and the company raising capital by issuing fresh equity shares during the initial public offering or through subsequent follow-on public offerings, qualified institutional placements and other methods. 

 

Monday, shares of Coal India ended 0.2% lower at INR 401.70 on the National Stock Exchange. End

 

Edited by Saji George Titus

 

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