SECL launches banker search for ₹10,000 crore IPO
South Eastern Coalfields has kicked off a search for investment banks to manage an up to ₹10,000 crore listing, adding to a wave of state-controlled energy equity hitting Indian markets this year.
South Eastern Coalfields (SECL) has invited pitches from four to five investment banks to lead an initial public offering valued between ₹8,000 crore and ₹10,000 crore. The Coal India subsidiary is structuring the deal as a split between a fresh equity issuance of roughly 5% and an offer for sale of at least 10% by the parent company.
Ahead of the float, SECL will split its equity shares, which currently carry a face value of ₹1,000 each, into smaller denominations. Coal India ultimately intends to divest up to a quarter of its holding in the unit over time, with this initial tranche serving as the first step in that broader strategy.
The SECL offering will run concurrently with a similarly sized roughly ₹10,000 crore IPO from sister company Mahanadi Coalfields (MCL). “Both the IPO processes will run simultaneously, with SECL expected to list a month or two after Mahanadi,” a person familiar with the timelines said.
Together, the twin listings represent a roughly ₹20,000 crore injection of new paper into the Indian equity market. The dual floats follow a direct advisory from the ministry of coal, which instructed the state-owned parent to list its subsidiaries during the current financial year. For the government, the listings unlock value in key energy assets and establish market benchmarks for future valuations.
Institutional investors will be pricing a major physical asset base. SECL is among the highest-producing units within the Coal India network, operating 61 mines across Chhattisgarh and Madhya Pradesh. The company produced 176.2 million tonnes of coal in the last fiscal year, registering a 5.26% growth rate.
Beyond raw extraction, SECL also holds industrial processing assets. The unit operates the Dankuni Coal Complex in West Bengal, a leased carbonization plant that produces coal gas, coke fines, coal fines, dehydrated tar, and ammonium sulphates.
While SECL's banking syndicate is still being finalized, MCL has already selected its lead managers. That group includes SBI Capital Markets, Axis Capital, IIFL Capital Services, IDBI Capital Markets and Bank of Baroda Capital Markets. Coal India did not immediately respond to requests for comment on the SECL timeline.
