Coal India Limited has secured board approval for a significant divestment plan involving its wholly owned subsidiary Mahanadi Coalfields Limited (MCL). The development marks a major step in the company's strategic restructuring and capital market initiatives.

Board Approval and Timeline

The Coal India Limited board, at its meeting held on 23.03.2026, accorded in-principle approval for the divestment of up to 25% of equity shares held by the company in MCL. This approval builds upon an earlier circular resolution dated 23.12.2025, where the board had approved the listing of Mahanadi Coalfields Limited.

Divestment Structure and Market Routes

The divestment will be executed through Offer for Sale (OFS) mechanism, providing flexibility in implementation. The company plans to utilize multiple market routes to optimize the divestment process and ensure maximum value realization.

Key features of the divestment plan include:

• Execution in one or more tranches for strategic flexibility
• Initial Public Offering (IPO) as primary route
• Other permissible market routes in domestic market
• Compliance with SEBI (ICDR) Regulations, 2018
• Adherence to Securities Contracts (Regulation) Rules, 1957

Regulatory Framework and Approvals

The proposed divestment operates within a comprehensive regulatory framework ensuring compliance with all applicable provisions. The approval will be communicated to the Ministry of Coal (MoC) for onward submission to the Department of Investment and Public Asset Management (DIPAM).

Implementation Conditions

The proposed listing of MCL remains subject to several critical conditions that must be fulfilled before execution. These conditions ensure proper due diligence and regulatory compliance throughout the process.

The implementation is contingent upon:

• Receipt of requisite regulatory approvals
• Favorable market conditions
• Completion of necessary formalities
• DIPAM clearance through Ministry of Coal

This strategic divestment represents Coal India Limited's commitment to unlocking value from its subsidiary operations while maintaining compliance with regulatory requirements and market best practices.

Coal India Limited's board has officially approved the incorporation of an Intermediate Holding Company (IHC) in Singapore, marking a strategic milestone in the state-owned coal mining giant's international expansion plans.

Board Approval and Regulatory Filing

The company has filed the requisite disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, formally notifying stock exchanges about this corporate development. The filing was signed by B.P. Dubey, Executive Director (Company Secretary) and Compliance Officer.

Strategic Objectives and Business Focus

The Singapore-based IHC will serve multiple strategic purposes for Coal India's international operations:

Regulatory Requirements and Approvals

The incorporation process requires approvals from key government bodies, specifically the Ministry of Coal (MoC) and the Department of Investment and Public Asset Management (DIPAM). The company has indicated that the final name and incorporation date of the IHC will be communicated in due course.

Corporate Structure and Investment Details

Coal India Limited will maintain 100% shareholding control of the Singapore entity through equity investment. The subscription cost and share pricing details are yet to be finalized, as indicated in the regulatory filing.

Market Implications

As India's largest coal mining company and a Maharatna PSU, Coal India's decision to establish an international holding company in Singapore reflects the company's commitment to diversifying beyond domestic operations. Singapore's strategic location in the Asia-Pacific region and business-friendly environment make it an ideal hub for Coal India's overseas expansion into critical minerals acquisition and international investment management.