Coal India Limited has secured board approval for a significant disinvestment initiative involving its subsidiary South Eastern Coalfields Limited (SECL). The Maharatna company announced the in-principle approval for SECL's disinvestment through a structured approach combining Offer for Sale and fresh equity issuance.

Board Approval Details

The Board of Coal India Limited granted in-principle approval at its meeting held on 23.03.2026 for the disinvestment structure. This follows an earlier circular resolution dated 23.12.2025, where the board had initially approved SECL's listing proposal.

Disinvestment Structure

The approved disinvestment plan encompasses two key components. Coal India Limited will divest up to 25% of its equity shares in SECL through the Offer for Sale route. Simultaneously, SECL will issue fresh equity shares aggregating up to 10% of the post-issue paid-up equity share capital.

The transaction will be executed in one or more tranches through Initial Public Offer and other permissible market routes in the domestic market. The entire process will comply with applicable provisions of SEBI (ICDR) Regulations, 2018, and Securities Contracts (Regulation) Rules, 1957.

Regulatory Pathway

The board's approval will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM). This follows the established protocol for disinvestment initiatives by public sector enterprises.

Key regulatory requirements include:

• Compliance with SEBI (ICDR) Regulations, 2018
• Adherence to Securities Contracts (Regulation) Rules, 1957
• Receipt of requisite regulatory approvals
• Completion of necessary formalities

Implementation Timeline

The proposed listing of SECL remains subject to receipt of requisite regulatory approvals and completion of necessary formalities. The company has indicated that the disinvestment will proceed through established regulatory channels, ensuring full compliance with applicable norms.

This development represents a significant step in Coal India Limited's strategic portfolio management, involving one of its key subsidiary operations in the coal mining sector.

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.