The Prime Minister’s Office has asked Coal India to map and list every one of its subsidiaries by 2030, a move that could change the way investors see the coal giant.
Why the government is pushing for a full listing
The directive aims to improve governance, increase transparency, and unlock value through asset monetisation. By taking the subsidiaries public, the government hopes to attract fresh capital and give shareholders a clearer picture of each unit’s performance.
Coal India’s current subsidiary portfolio
Coal India Ltd (CIL) runs eight major subsidiaries:
- Eastern Coalfields Ltd
- Bharat Coking Coal Ltd (BCCL)
- Central Coalfields Ltd
- Western Coalfields Ltd
- South Eastern Coalfields Ltd (SECL)
- Northern Coalfields Ltd
- Mahanadi Coalfields Ltd
- Central Mine Planning & Design Institute Ltd (CMPI)
Listing timeline and recent progress
Key milestones already in motion:
- BCCL and CMPI are slated to list on stock exchanges by March 2026; domestic and international roadshows are completed.
- SECL and Mahanadi Coalfields have received board approval for listing, with the Ministry of Coal urging concrete steps for a 2024‑25 listing.
- BCCL filed its draft red‑herring prospectus (DRHP) with SEBI, targeting an offer‑for‑sale (OFS) of up to 46.57 crore shares.
- CMPI also submitted a DRHP for an OFS‑based IPO.
What this means for investors
Listing these units could bring several benefits:
- Increased liquidity: Shares will be tradable on major exchanges, allowing easier entry and exit.
- Transparent pricing: Market‑driven valuations may reveal hidden value in assets that were previously held within the parent company.
- Potential dividend streams: Separate profit centres could pay dividends directly to shareholders.
- Risk diversification: Investors can pick specific coal assets (e.g., coking coal versus thermal coal) based on their risk appetite.
Looking ahead
Coal India aims to produce 875 million tonnes of coal in the current financial year, underscoring its central role in India’s energy mix. As the government pushes for a full subsidiary listing by 2030, retail and institutional investors should keep an eye on upcoming prospectuses and roadshows.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.