Coal India Shares Hit 7-Month High, Board Clears Plan To List MCL & SECL
Coal India shares rose about 3 percent to a seven-month high after its board approved the proposal to list subsidiaries MCL and SECL. The move, guided by the Coal Ministry, improved investor confidence and extended the stock’s rally for the sixth consecutive session.
Coal India Stock Rises on Key Board Decision. | Representative image | Photo Credit: PTI
New Delhi: Coal India shares moved sharply higher on Wednesday after the company’s board gave in-principle approval to list two of its major subsidiaries, Mahanadi Coalfields Limited and South Eastern Coalfields Limited. The decision lifted investor sentiment and pushed the stock to its highest level in the last seven months.
In morning trade, Coal India shares climbed to Rs 412.40, gaining nearly 3 percent. With this rise, the stock extended its winning streak to six straight trading sessions.
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Government Push Behind the Move
The company informed stock exchanges on December 23 that the proposed listings of MCL and SECL will need several regulatory approvals. The move follows advice from the Ministry of Coal, which on December 16 asked Coal India to take concrete steps to list its subsidiaries in the financial year 2026–27.
Investors see the development as a positive step that could unlock value and improve transparency within the Coal India group.
Strong Profile of SECL
South Eastern Coalfields Limited is a Mini Ratna public sector company with a strong pipeline of projects. A total of 73 major coal projects have been approved for SECL, with a combined capacity of 30.28 crore tonnes per year and planned capital spending of Rs 44,571 crore.
Out of these projects, 30 are currently under implementation, 38 have already been completed, and five underground blocks are operating as existing mines. In the financial year 2024–25, SECL produced 16.75 crore tonnes of coal. Its coal reserves are spread across Chhattisgarh and Madhya Pradesh.
MCL’s Role in Coal India Group
Mahanadi Coalfields Limited was separated from SECL in 1992 and is based in Sambalpur, Odisha. It received Miniratna status in 2019 and is one of Coal India’s most important subsidiaries, playing a key role in coal production from eastern India.
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Momentum Already Building
Coal India shares had already gained strength a day earlier, rising nearly 4 percent to close at Rs 400.65 on Tuesday. That jump followed reports suggesting that another subsidiary, Bharat Coking Coal Limited, may soon come out with an initial public offering.
Together, these developments have strengthened market confidence in Coal India and its future growth plans.
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