Coal India Subsidiary South Eastern Coalfields Plans Up To $800 Million IPO

South Eastern Coalfields Ltd (SECL), a major subsidiary of Coal India Ltd, is reportedly planning to go public in Mumbai, potentially raising up to $800 million through an initial public offering (IPO), according to Bloomberg's sources. The coal producer has engaged ICICI Securities, SBI Capital Markets, Motilal Oswal Investment Advisors, and IDBI Capital Markets & Securities as advisory firms for the proposed share sale.

Coal India has appointed these banks to assist in the IPO process. SECL is expected to file its draft prospectus with the market regulator as early as December, according to individuals familiar with the matter. The IPO could involve SECL selling shares, and discussions surrounding the size and timing of the offering remain ongoing.

This planned IPO is part of Coal India's strategy to list some of its subsidiaries on the public market. Another subsidiary, Mahanadi Coalfields Ltd, recently filed a draft prospectus with the market regulator, indicating that Coal India intends to sell up to 661.8 million shares in its offering.

The proposed SECL IPO would bolster an active pipeline of Indian share sales as companies capitalize on rising domestic investor participation and capital. SECL operates 60 coal mines across central India, with 35 of them located in Chhattisgarh and 25 in Madhya Pradesh, as per information on the company's website.

If successfully completed, this IPO would further expand Coal India's efforts to monetize its subsidiary businesses through capital markets, adding another large public issue to India's existing IPO pipeline.