Coal India’s stock got a lift on Wednesday, climbing roughly 3% after a key board decision.
Board approves listing of two subsidiaries
The company’s board gave in‑principle approval to list two of its units – Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). The move still requires several regulatory clearances, but it follows a ministry directive to push the listings forward in the 2027 financial year.
What the subsidiaries do
- Mahanadi Coalfields Limited (MCL) – carved out of SECL in 1992, headquartered in Sambalpur and awarded Miniratna status in 2019.
- South Eastern Coalfields Limited (SECL) – a Mini‑Ratna public‑sector enterprise operating in Chhattisgarh and Madhya Pradesh. It has 73 approved coal projects (30 ongoing, 38 completed) with a total capacity of 30.28 crore tonnes per year and produced 16.75 crore tonnes in FY 2024‑25.
Impact on Coal India’s share price
Shares rose to Rs 412.40, the highest level in seven months, marking the sixth consecutive session of gains. In the past week the stock is up about 7%, over the last month more than 10%, and it’s up over 6% so far in 2025. Over the past three years the share price has jumped roughly 91%.
The stock now trades at a price‑to‑earnings (P/E) ratio of just over 7, indicating a relatively low valuation.
Potential IPO of Bharat Coking Coal
Separately, reports suggest Coal India may sell around 10% of its stake in Bharat Coking Coal (BCCL) through a pure offer‑for‑sale IPO worth about Rs 1,300 crore, possibly within the next two weeks. This could draw additional investor interest.
What investors should keep in mind
While the subsidiary listings could improve growth prospects, the approvals are not final and depend on regulator sign‑off. Investors should monitor developments and consider the stock’s modest valuation before acting.
Remember, this is just an overview, not a prediction. Do your own research before making any decisions.