South Eastern Coalfields (SECL), a wholly-owned subsidiary of state-run Coal India Ltd. (CIL), has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed IPO will consist entirely of an Offer For Sale (OFS) by its promoter, Coal India Ltd., comprising up to 668,056,100 equity shares, each with a face value of Rs 2.
The shares are slated for listing on both the BSE and NSE, utilizing the book-building process. Under the proposed structure, up to 50 percent of the net offer will be reserved for qualified institutional buyers (QIBs), while non-institutional bidders will have access to up to 15 percent, and retail investors will be allocated up to 35 percent of the offering.
About South Eastern Coalfields (SECL)
Incorporated in 1985 and headquartered in Bilaspur, Chhattisgarh, SECL achieved Miniratna Category-I status in 2007. The company completed 40 years of coal mining operations in 2025, establishing itself as a significant player in India's coal sector. In fiscal year 2026, SECL produced 176.29 million tonnes of coal, contributing 16.94 percent to India's total coal production and 22.95 percent to CIL's overall output. This marked a 5.25 percent increase from the 167.49 million tonnes produced in FY25, representing the highest growth among CIL subsidiaries.
Extensive Resources and Operations
As of April 1, 2026, SECL possessed geological resources estimated at approximately 47.55 billion tonnes, with 10.93 billion tonnes already projectized. Audited reserves of 4.61 billion tonnes are projected to support production for about 26 years at FY26 levels. SECL's Gevra and Kusmunda opencast mines are globally recognized, ranking second and fourth, respectively, by production capacity. Notably, Gevra has also been identified as Asia's largest coal mine.
The company operated 53 producing mines as of September 30, 2026, which included 19 opencast and 34 underground mines spread across 13 areas within the Korba, Mand-Raigarh, and Central India coalfields. Opencast mines accounted for the majority of production, contributing 91.76 percent in the first half of FY27. SECL employs a diverse range of transportation methods for coal evacuation, including rail, dedicated merry-go-round systems, belt conveyors, and roads. In FY26, road dispatch alone accounted for 66.65 million tonnes, or 37.31 percent of total dispatches. The company has also implemented various measures to mitigate its ecological footprint.
Financial Performance
SECL has demonstrated robust financial performance. For the first half of FY27, revenue climbed to Rs 16,593.7 crore, up from Rs 15,090.2 crore in the same period a year prior. Net profit significantly increased to Rs 2,174.3 crore from Rs 1,140.9 crore. In the full fiscal year 2026, the company reported revenue of Rs 32,956.5 crore and a net profit of Rs 4,754.5 crore, compared to Rs 29,998.3 crore revenue and Rs 4,540.4 crore net profit in FY25.
Lead Managers and Registrar
The book-running lead managers for the SECL IPO include SBI Capital Markets, ICICI Securities, IDBI Capital Markets & Securities, and Motilal Oswal Investment Advisors. KFIN Technologies has been appointed as the registrar to the offer.