Coal India At A Seven-Month High As Board Approves SECL Listing

Coal India Ltd. shares are in focus today. The stock is trading higher by over 2.7% on Wednesday, at a seven-month high. This surge is on the back of the in–principle approval for listing of South Eastern Coalfields Ltd. on Tuesday.

The Ministry of Coal recently urged Coal India Ltd (CIL) to take definitive measures to facilitate the listing of its subsidiaries, Mahanadi Coalfields Ltd and South Eastern Coalfields Ltd (SECL), in the next financial year.

In response, CIL stated in an exchange filing that its Board, through a circular resolution, has granted in-principle approval for SECL’s listing. This decision will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM).

Of the 25 analysts who have coverage on this stock, and are tracked by Bloomberg, 14 have a buy recommendation, 6 have a 'hold' call, and 5 have a 'buy' coverage.

The planned listing of SECL will require multiple regulatory clearances, including approval from market regulator SEBI and completion of any necessary internal restructuring.

South Eastern Coalfields, headquartered in Bilaspur, Chhattisgarh, primarily operates mines in Chhattisgarh and Madhya Pradesh and contributes a significant portion of Coal India’s overall output.

The company is set to become the first coal PSU in India to adopt paste fill technology for coal mining — marking a major step toward sustainable and environmentally friendly mining practices.

To roll out this advanced underground mining technology, SECL entered into a Rs 7,040 crore agreement with TMC Mineral Resources Pvt. Ltd. in April.

Mahanadi Coalfields, which was spun off from SECL in 1992, is headquartered in Sambalpur and operates four joint ventures: Mahanadi Basin Power Ltd., MJSJ Coal Ltd., MNH Shakti Ltd., and Mahanadi Coal Railway Ltd. The company reported total production of 19.326 crore tonnes in FY 2022-23.