Coal India Ltd has seen a significant increase in shareholding by Life Insurance Corporation of India (LIC) through a series of market purchases. LIC's stake in the company has risen to 11.497% from the previous 9.450%. This disclosure was made on December 11, 2025, in compliance with SEBI regulations governing substantial acquisitions.

Shareholding Details

The acquisition involved 12,61,62,334 shares, representing 2.047% of Coal India's total share capital. LIC's shareholding progression shows a substantial increase in its investment in the coal mining company.

Transaction Timeline and Method

The share acquisition was conducted through market purchases over an extended period from October 31, 2017 to December 10, 2025. This indicates a systematic accumulation strategy by LIC rather than a single large transaction. The purchases were made through open market operations on NSE and BSE, where Coal India shares are listed.

Regulatory Compliance

LIC filed the disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates disclosure when any person or entity acquires shares that result in their holding exceeding certain thresholds in a listed company.

Strategic Investment

LIC's increased stake in Coal India represents a significant investment by India's largest insurance company in the state-owned coal mining enterprise. The acquisition demonstrates LIC's confidence in Coal India's business prospects and aligns with its investment strategy in large-cap public sector companies. Coal India remains one of the world's largest coal mining companies and a key player in India's energy sector.

The disclosure confirms that LIC does not belong to the promoter or promoter group of Coal India, maintaining its status as an institutional investor. This substantial shareholding increase positions LIC as one of the major institutional stakeholders in the company.

The Indian government has taken a historic step by approving coal auctions for exports, marking the country's first entry into the global coal export market. This groundbreaking policy decision represents a significant shift in India's energy sector strategy and opens new avenues for revenue generation in the coal industry.

Policy Framework and Scope

The approved auction system introduces a comprehensive framework that allows participation from all users, regardless of their intended use of coal. This inclusive approach removes traditional restrictions and barriers that previously limited coal access to specific user categories. The policy framework establishes India as a potential coal exporter for the first time in its history.

Market Implications

This policy shift has significant implications for India's coal sector and energy landscape. The move transforms India from a traditional coal-importing nation into a potential exporter, which could substantially impact the country's trade balance and energy security position. Coal India and other coal sector companies stand to benefit from this expanded market access.

The open auction system creates new opportunities for:

• Enhanced revenue generation through export markets
• Improved utilization of domestic coal resources
• Greater market flexibility for coal users
• Potential foreign exchange earnings

Strategic Significance

The approval represents a fundamental change in India's coal policy approach, moving away from restrictive usage-based allocations toward a more market-oriented system. This strategic shift aligns with broader economic reforms aimed at improving resource utilization and creating competitive market conditions.

The initiative positions India to leverage its coal resources more effectively while providing users with greater flexibility in coal procurement and utilization. The policy change could stimulate increased investment and development in the coal sector as companies prepare to capitalize on export opportunities.

Industry Impact

The coal export approval is expected to create ripple effects across the energy and mining sectors. Companies involved in coal production, transportation, and logistics are likely to see increased business opportunities as the export market develops. The policy also provides coal users with additional sourcing options and potentially more competitive pricing through the auction mechanism.

This historic policy decision marks a new chapter in India's energy sector evolution, potentially transforming the country's role in global coal markets while creating new economic opportunities for domestic stakeholders.