Coal India shares saw a 3% increase after its board granted initial approval to list two subsidiaries, Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). This positive development uplifted investor confidence in the state-owned company. The stock reached Rs 412.40 per share in morning trade on Wednesday, marking its highest level in seven months.
The upward trend continued as the stock extended its rally for the sixth consecutive trading session. Coal India informed exchanges that the proposed listings of MCL and SECL are contingent on obtaining various regulatory approvals. The Ministry of Coal’s advice on December 16 prompted Coal India to take concrete steps towards listing its subsidiaries by the financial year 2026–27.
South Eastern Coalfields Limited, a Mini Ratna public sector enterprise, boasts a robust project pipeline. With 73 major coal projects approved, SECL has a total capacity of 30.28 crore tonnes per annum and a sanctioned capital expenditure of Rs 44,571 crore. Currently, 30 projects are under implementation, 38 have been completed, and five underground blocks are operational mines.
In the financial year 2024–25, SECL produced 16.75 crore tonnes of coal, with reserves located in Chhattisgarh and Madhya Pradesh. Mahanadi Coalfields Limited, established in 1992 and headquartered in Sambalpur, Odisha, was carved out of SECL. Attaining Miniratna status in 2019, it stands as one of Coal India’s significant subsidiaries. Prior to this, Coal India shares had already surged nearly 4% to close at Rs 400.65 on Tuesday, following reports hinting at Bharat Coking Coal Limited’s (BCCL) upcoming initial public offering.
