Upcoming IPOs: Coal India subsidiaries BCCL, MCL & SECL to launch public issues soon; what you need to know

Coal India shares are in focus after rallying almost 7% in two trading sessions as the board approved the listing of its key subsidiaries. The company informed through an exchange filing that, “Ministry of Coal, vide its Office Memorandum I/37811/2025 dated 16.12.2025, had advised CIL to take concrete steps to ensure further listing of subsidiaries, namely MCL and SECL, in the upcoming financial year. Accordingly, the CIL Board, through circular resolution, has accorded in principle approval for the listing of Mahanadi Coalfields Limited (MCL) and the same shall be communicated to MoC for onward submission to DIPAM”.

Following the listing news, the Coal India investors rejoiced as the subsidiary listing involves a shareholder quota for the application of the IPOs. Investors and analysts sound optimistic about the listing of the two key subsidiaries. Tough company announced the principal approval for the listing of two subsidiary companies, the imminent listing of Bharat Coking Coal Ltd is also expected to churn up heavy investor interest before the other two subsidiaries open for the public issue.

Let's delve deeper into three key subsidiaries of Coal India

Bharat Coking Coal India

Bharat Coking Coal India Ltd (BCCL) is the leading coking coal producer in India, with 58.5% market share, operating through 32 mines across the country. The company primarily produces coking coal and holds an approximate reserve of 7,910 million tonnes. As of FY25, the company’s revenue stood strong at ₹14,597 crore and a net profit of ₹1,240 crore. SEBI approved the initial public offering on September 19, 2025, and the company is expected to launch the public issue in early 2026.

The company’s operations are of strategic importance as it serves the Indian steel Industry without external dependence. Additionally, it is well-positioned to capitalise on the potential demand for coking coal in India.

Mahanadi Coalfields IPO

It is the most important growth engine of Coal India by contributing 21% of Coal India’s resources at 25,099 million tonnes. Coal India produced 781 million tonnes of record output in FY25 and envisages reaching the output of 1 billion tonnes by FY28-29 and 1.22 billion tonnes in FY34-35. The company highlighted that the majority of this growth is expected to be contributed by MCL, SECL and CCL. As of FY25, Mahanadi Coalfields is the largest contributor to the consolidated profits of the company at 30% worth ₹10,823 crore and holds a net worth of ₹18,278 crore.

The company is also going through a major capex plan with ₹11,782 crore for coal gasification at its plant. The capex is aimed at reducing import dependence and developing the export potential through ammonia nitrate production.

South Eastern Coalfields Ltd

SECL is another major subsidiary of the Navratna PSU major, which contributes nearly 25% of the total Coal India’s total resources. The company equates MCL in terms of topline with a higher output share. However, it generates half the profit of MCL at ₹4,545 crore as of FY25. The primary reason is the higher operational cost for SECL as it operates in a mix of underground mines, while MCL operates entirely in the open ground mines. SECL holds Gevra Mine, which is on the path of expansion to become the world’s largest coal mine.

In summary, Coal India shareholders are expected to cash in on a major value unlocking opportunity through the listing of MCL, SECL and BCCL. Each of these companies holds a dominant market position and holds extensive profits and net worth, aiding in a strong listing at the bourses.