Coal India Shares Surge as Board Greenlights Listing of Major Subsidiaries

December 24, 2025 – Shares of the state-owned Maharatna giant, Coal India Limited (CIL), witnessed a significant rally on Wednesday, climbing nearly 3% to reach a seven-month high of ₹412.40. This surge follows the company’s announcement that its board has granted in-principle approval for the public listing of two of its most productive subsidiaries: Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL).

The move is part of a broader government strategy to unlock value in high-performing Public Sector Undertakings (PSUs) and increase corporate transparency through public participation.

Unlocking Value: The Powerhouse Subsidiaries

MCL and SECL are not just peripheral units; they are the operational backbone of Coal India. Together, they account for over 52% of CIL’s total coal production.

• Mahanadi Coalfields Limited (MCL): Based in Odisha, MCL is CIL’s single largest producer. In the 2024–25 fiscal year, it achieved a record production of 225 million tonnes (MT), contributing roughly 29% to the parent company’s output.
• South Eastern Coalfields Limited (SECL): Operating in Chhattisgarh and Madhya Pradesh, SECL produced 167 MT in FY25. It is also home to the Gevra mine, which is on track to becoming the world’s largest coal mine.

Strategic Roadmap and Next Steps

The board’s decision was prompted by a directive from the Ministry of Coal, issued via an office memorandum on December 16, 2025. The ministry advised CIL to take “concrete steps” to facilitate these listings within the upcoming financial year (FY27).

Note: The listing of Bharat Coking Coal Ltd (BCCL) is expected to hit the market much sooner, potentially within the next two weeks, with a projected IPO size of roughly ₹1,300 crore.

Impact on Shareholders

Market analysts view the news as a major “value-unlocking” event. While Coal India will likely retain majority control, the separate listing of these “Miniratna” subsidiaries allows the market to value each entity based on its specific efficiency and reserves.

Key Investor Takeaways:

• Improved Transparency: Public listings require stricter disclosure norms, which can lead to better operational efficiency.
• Dividend Potential: Both MCL and SECL are highly profitable, with PAT (Profit After Tax) reaching ₹10,823 crore and ₹4,648 crore respectively in FY25.
• Market Sentiment: The stock has gained nearly 8% over the last six trading sessions, showing robust confidence in CIL’s restructuring.

Looking Ahead

While the board has given its nod, several hurdles remain. The proposal must now be cleared by the Department of Investment and Public Asset Management (DIPAM) and the Securities and Exchange Board of India (SEBI). Investors are keeping a close eye on the upcoming BCCL IPO, which will serve as a bellwether for how the market receives the larger MCL and SECL listings in 2026.