Coal India Subsidiary South Eastern Coalfields Plans Up To $800 Million IPO

South Eastern Coalfields Ltd (SECL), one of Coal India Ltd’s largest subsidiaries, is preparing for a potential initial public offering in Mumbai that could raise as much as $800 million, according to a report by Bloomberg citing sources.

The coal producer has appointed ICICI Securities, SBI Capital Markets, Motilal Oswal Investment Advisors and IDBI Capital Markets & Securities as advisers for the proposed share sale.

Coal India subsidiary plans IPO

SECL could file its draft prospectus with the market regulator as early as December, the people said. Coal India is expected to sell shares as part of the proposed offering.

However, discussions are continuing and the size and timing of the IPO could change. Coal India, SECL and the appointed banks did not immediately respond to requests for comment.

The proposed listing is part of Coal India’s broader plan to take some of its subsidiaries to the public markets. Mahanadi Coalfields Ltd, another major subsidiary, filed a draft prospectus with the market regulator earlier this month. According to that filing, Coal India plans to sell up to 661.8 million shares in the offering.

Major coal producer expands public-market pipeline

The potential SECL IPO would add to an active pipeline of Indian share sales as companies look to tap growing domestic investor participation and capital.

SECL operates 60 coal mines across central India, making it a significant contributor to Coal India’s production base. Of its mines, 35 are located in Chhattisgarh and 25 in Madhya Pradesh, according to information on the company’s website.

If completed, the offering would further expand Coal India’s efforts to monetise its subsidiary businesses through capital markets while adding another large public issue to India’s IPO pipeline.