Now Reading: Coal India unit SECL seeks bankers for ₹10,000 crore IPO
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Coal India unit SECL seeks bankers for ₹10,000 crore IPO
South Eastern Coalfields Ltd (SECL), a Coal India subsidiary, has begun the process of appointing investment banks for an initial public offering that is expected to raise between ₹8,000 crore and ₹10,000…
The Story in Brief
South Eastern Coalfields Ltd (SECL), a Coal India subsidiary, has begun the process of appointing investment banks for an initial public offering that is expected to raise between ₹8,000 crore and ₹10,000 crore, according to a document reviewed by Mint. The IPO will combine a fresh issue of shares with an offer for sale by the parent.
Coal India plans to divest up to 25% of its stake over time, starting with at least a 10% offer for sale and about a 5% fresh issue. Mahanadi Coalfields Ltd, another Coal India unit, has a parallel IPO process underway and is expected to list a month or two before SECL. The company’s 61 mines in Chhattisgarh and Madhya Pradesh produced 176.2 million tonnes in FY26.
The Indian Opinion
The government’s push to list Coal India subsidiaries is sold as unlocking value, but ordinary investors should watch for the fine print. Will the offer for sale dilute Coal India’s holding without actually raising new capital for the subsidiary? And the promised fresh issue component needs to be big enough to fund real expansion, not just pay dividends to the parent. The real test: how much of the ₹10,000 crore actually stays with SECL? If most goes to the exchequer, this is another divestment masquerading as growth.
Source: livemint.com
This story was synthesised by AI from the source linked above.
