Coal India Limited (CIL) has received in-principle approval for a major strategic move involving its subsidiary, South Eastern Coalfields Limited (SECL). The board sanctioned the divestment of up to 25% equity in SECL via an Offer for Sale (OFS). Additionally, CIL approved SECL to issue up to 10% fresh equity shares through an Initial Public Offer (IPO) or other market routes. The final proposal will now be forwarded to the Ministry of Coal.
Board Approves Major SECL Transaction
Coal India Limited (CIL) announced that its Board, acting via Circular Resolution on December 23, 2025, and further affirmed at its meeting on March 23, 2026, has granted in-principle approval for significant corporate actions concerning its subsidiary, South Eastern Coalfields Limited (SECL).
Divestment via Offer for Sale (OFS)
The primary approval relates to the divestment of the parent company’s holding. CIL will proceed with the divestment of up to 25% of its equity shares held in SECL through an Offer for Sale (OFS) mechanism. This action aims to unlock value and comply with government disinvestment targets.
Fresh Equity Issuance by SECL
Concurrently, the Board approved SECL to undertake a fresh issuance of equity shares. This issuance is set at an aggregate of up to 10% of the post-issue paid-up equity share capital of SECL. The issuance will be conducted either through an Initial Public Offer (IPO) or through other permissible market routes, which may occur in one or more tranches.
Next Steps and Regulatory Compliance
The approval for both the OFS and the fresh issuance is contingent upon receiving all requisite regulatory approvals and completing all necessary formalities. The proposal will now be communicated to the Ministry of Coal (MoC) for onward submission to the Department of Investment and Public Asset Management (DIPAM).
It is noted that the initial in-principle approval for the listing of SECL itself was already granted via the Circular Resolution dated December 23, 2025.
Source: BSE
