South Eastern Coalfields Files DRHP for IPO
South Eastern Coalfields (SECL), a subsidiary of Coal India Limited, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed offering will be conducted through a book-building process and consists entirely of an offer for sale (OFS) by the parent company, Coal India Limited. Consequently, SECL will not receive any proceeds from the issuance.
The equity shares will have a face value of Rs 2 each. Under the proposed allocation structure, a maximum of 50% of the net offer is reserved for qualified institutional buyers (QIBs). Non-institutional investors (NIIs) and retail individual investors are allocated not less than 15% and 35%, respectively. The company intends to list its shares on the BSE and NSE. SBI Capital Markets Limited, ICICI Securities Limited, IDBI Capital Markets & Securities Limited, and Motilal Oswal Investment Advisors Limited have been appointed as book-running lead managers, while KFin Technologies Limited will serve as the registrar.
SECL, headquartered in Bilaspur, Chhattisgarh, holds Miniratna Category-I status. As of April 1, 2026, the company reported total geological coal resources of approximately 47.55 billion tonnes, representing about 11.50% of India's total coal geological resources. Its audited coal reserves were 4.61 billion tonnes as of the same date, estimated to sustain operations for approximately 26 years based on FY26 production levels.
The company operates 53 mines across 13 areas in the Korba, Mand-Raigarh, and Central India coalfields. In FY26, SECL produced 176.29 million tonnes of coal, accounting for 16.94% of India's total coal production. Financial performance showed growth, with revenue from operations reaching Rs 16,593.7 crore for the six months ended September 30, 2026, up from Rs 15,090.2 crore in the same period the previous year. Net profit for the same six-month period rose to Rs 2,174.3 crore from Rs 1,140.9 crore.
For investors, this IPO represents a significant opportunity to gain exposure to a major subsidiary of a state-owned coal giant, though the reliance on an offer for sale structure means capital will flow to the parent entity rather than directly into SECL's operational expansion.
Why it matters
This IPO marks a major divestment move for Coal India, allowing investors to participate in the equity of one of the country's largest coal-producing subsidiaries.
FAQ
Will SECL receive proceeds from the IPO?
No, the offering is entirely an offer for sale by Coal India Limited, so the proceeds will accrue to the parent company.
What is the allocation structure for the IPO?
Not more than 50% is reserved for qualified institutional buyers, with not less than 15% for non-institutional investors and 35% for retail individual investors.
How long are SECL's coal reserves estimated to last?
Based on FY26 production of 176.29 million tonnes, reserves are estimated to be sufficient for approximately 26 years.
Source: Economic Times Markets. See the original source for full details.
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