South Eastern Coalfields Limited (SECL), a subsidiary of Coal India Limited, has filed preliminary documents with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO). The issue will be entirely an Offer for Sale (OFS), through which Coal India plans to sell 668.1 million equity shares in SECL.
Since the IPO does not include a fresh issue of shares, SECL will not receive any money directly from the offering. Instead, the entire proceeds from the share sale will go to Coal India. According to the Draft Red Herring Prospectus (DRHP) filed on November 1, SECL is among India’s largest coal-producing companies. Headquartered in Bilaspur, Chhattisgarh, the company was established in 1985 and is the second-largest coal-producing subsidiary of Coal India.
SECL IPO Details: Coal India to Sell 668.1 Million Shares
The proposed IPO will allow Coal India to offload 668.1 million equity shares in SECL through the OFS route. As the issue does not involve the creation of new shares, the company will not raise fresh funds for business expansion or other corporate requirements.
The primary purpose of the IPO is to reduce Coal India’s stake in its subsidiary by selling a portion of its existing shareholding.
Four financial institutions have been appointed as book-running lead managers for the issue. These include SBI Capital Markets, ICICI Securities, IDBI Capital Markets & Securities and Motilal Oswal Investment Advisors. KFin Technologies will serve as the registrar to the IPO.
SECL Accounts for 16.94% of India’s Coal Production
SECL holds an important position in India’s coal industry, contributing 22.95% of Coal India’s overall coal production. The company received Miniratna Category-I status in March 2007 and completed 40 years of coal mining operations in 2025.
During FY2025-26, SECL produced 176.29 million tonnes of coal, registering a 5.25% increase compared with 167.49 million tonnes in FY2024-25. Its contribution represented 16.94% of India’s total coal production during FY2026.
The company also has substantial coal resources. As of April 1, 2026, SECL’s geological coal resources stood at approximately 47.55 billion tonnes, accounting for around 11.50% of the country’s total geological coal resources.
According to its draft IPO documents, the company has verified coal reserves of 4.61 billion tonnes. At its FY2025-26 production rate, these reserves could support mining operations for approximately 26 years.
SECL operates some of the world’s largest open-cast coal mines, including the Gevra and Kusmunda mines located in Chhattisgarh’s Korba coalfields. As of September 30, 2026, the company had 53 operational mines, comprising 19 open-cast mines and 34 underground mines.
SECL Financial Performance: Profit Nearly Doubles
SECL has reported an improvement in its financial performance during the six months ended September 30, 2026.
The company’s operating income increased to Rs 16,593.7 crore, compared with Rs 15,090.2 crore during the corresponding period of the previous year. Its profit after tax (PAT) almost doubled to Rs 2,174.3 crore from Rs 1,140.9 crore recorded in the same period last year.
For the full financial year 2025-26, SECL reported operating income of Rs 32,956.5 crore, up from Rs 29,998.3 crore in FY2024-25.
Its annual net profit also increased to Rs 4,754.5 crore from Rs 4,540.4 crore during the previous financial year.
Other Coal India Subsidiaries Also Preparing for IPOs
SECL is not the only Coal India subsidiary planning to enter the stock market. In September, another group company, Mahanadi Coalfields Limited, also submitted preliminary IPO documents to SEBI.
Under its proposed offering, Coal India intends to sell a 10% stake in Mahanadi Coalfields through an IPO.
Meanwhile, Bharat Coking Coal Limited, another Coal India subsidiary, had already launched its first public issue earlier this year. These developments reflect Coal India’s ongoing plans to bring its subsidiaries to the stock market through stake sales.
Disclaimer
This article is intended solely for informational and educational purposes. The IPO details, financial figures and business information are based on the company’s draft regulatory filings and other available information. IPO plans, regulatory approvals and financial projections may be subject to change. This article does not constitute investment advice or a recommendation to subscribe to any public issue. Investors should review the official offer documents and consult a qualified financial advisor before making investment decisions. Investments in the securities market are subject to market risks.