Coal India shares surged nearly 3 percent on December 24 after the company’s board gave in-principle approval to list two of its major subsidiaries — Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). The positive development boosted investor confidence in the PSU giant.
Coal India Shares Hit 7-Month High
During Wednesday’s morning trade, Coal India shares climbed to ₹412.40, marking their highest level in the last seven months. The stock has now posted gains for six consecutive trading sessions reflecting strong market momentum.
Coal India to List Two Key Subsidiaries
In a post-market filing on December 23, the company confirmed that the proposed listing of MCL and SECL is subject to regulatory approvals. The move follows guidance from the Ministry of Coal which on December 16 advised Coal India to take concrete steps for listing its subsidiaries in FY2027.
SECL Business Overview and Production Details
South Eastern Coalfields Limited (SECL) is a Mini Ratna PSU with a strong the operational base.
- SECL has 73 approved coal projects with a total capacity of 30.28 crore tonnes per annum
- Total sanctioned capital stands at ₹44,571 crore
- Out of these projects, 30 are ongoing, 38 are completed and 5 underground blocks are existing mines
In FY 2024-25, SECL produced 16.75 crore tonnes of coal. Its coal reserves are spread across Chhattisgarh and Madhya Pradesh.
MCL Background and Miniratna Status
Mahanadi Coalfields Limited (MCL) was carved out of SECL in 1992 and is headquartered in Sambalpur, Odisha. The subsidiary received Miniratna status in 2019, strengthening its profile ahead of a possible stock market listing.
IPO Buzz Lifts Coal India Shares Further
Earlier, Coal India shares jumped nearly 4 percent to close at ₹400.65 after reports suggested that another subsidiary, Bharat Coking Coal Limited (BCCL), may soon launch an IPO. According to media reports, BCCL could raise around ₹1,300 crore through a pure Offer for Sale (OFS).
Coal India is expected to offload nearly 10 percent equity stake in BCCL through this proposed public issue.
Coal India Share Price Performance
The recent rally has strengthened the long-term performance of Coal India shares:
- Up nearly 7% in one week
- Gained over 10% in one month
- Up more than 6% in 2025 so far
- Delivered 91% returns in the last three years
Currently, Coal India shares are trading at a P/E ratio of just over 7, making the stock attractive from a valuation perspective.
Also Read: PAN-Aadhaar Linking Deadline 2025: Last Chance to Avoid PAN Deactivation