Kolkata: Coal India Ltd (CIL) will complete the IPOs of two of its largest subsidiaries, South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), within the current financial year.
This was announced by CIL chairman and managing director B Sairam on Monday, while responding to questions by shareholders at the Annual General Meeting. The exact timeline would depend on market conditions and government directives, he said.
“Regarding Initial Public Offerings (IPOs) of SECL and MCL, we plan to complete them by the year-end positively. The date will depend upon market conditions and government directives, etc,” Sairam said, as reported by News18.
In March, CIL’s Board had accorded in-principle approval for the divestment of up to a 25 per cent equity stake each in SECL and MCL through an offer for sale (OFS), along with the issuance of up to 10 per cent of SECL’s post-issue paid-up capital as fresh equity shares through the IPO route.
According to the chairman, MCL’s proposed public issue is expected to be worth around Rs 10,000 crore, though the offer size and structure will be finalised closer to the launch.
SECL IPO is also expected to be worth Rs 8,000-Rs 10,000 crore, according to market expectations, he added.
The listing of the two subsidiaries, among the largest coal producers under CIL, accounting for about half of the company’s total output, follows the completed public listings of two other CIL arms – Central Mine Planning and Design Institute Ltd (CMPDI) and Bharat Coking Coal Ltd (BCCL) – earlier this year.