“We are aiming to list three CPSEs (central public sector enterprises) on the market this financial year,” Chawla said. MCL has already filed its draft red herring prospectus (DRHP), while IIFCL and SECL are also slated to be listed, he added.
The three offerings will have different implications for government finances. Proceeds from IIFCL’s initial public offering (IPO) will accrue directly to the government, its sole shareholder. Proceeds from the stake sales in MCL and SECL, however, will go to their parent, Coal India, with the government potentially benefiting indirectly through dividends in FY28.
Dipam has begun preparations for IIFCL’s IPO, inviting bids earlier this week to appoint a registrar and share transfer agent, as well as an advertising agency for the proposed offering. Eligible bidders can submit applications online until November 3.
The planned listings form part of the government’s broader disinvestment programme, with Chawla indicating that the “momentum” in stake sales and public offerings would continue in FY27.
Wholly owned by the Government of India, IIFCL was established in 2006 to provide long-term financial assistance to viable infrastructure projects. It registered with the Reserve Bank of India as an infrastructure finance non-banking financial company in 2013.
IIFCL had a net worth of ₹17,898 crore at the end of FY26. Its net profit fell 36 per cent year-on-year to ₹1,379 crore in the financial year, weighed down by mark-to-market losses on offshore borrowings amid foreign exchange fluctuations.
The two coal subsidiaries are among Coal India’s largest operating units and account for a substantial share of its production and profits. MCL produced 218.31 million tonnes (mt) of coal in FY26, the highest among the group’s subsidiaries, and reported a net profit of ₹10,698 crore. SECL produced 176.29 mt and posted a net profit of ₹4,755 crore.
Coal India’s total production fell to 768.19 million tonnes in FY26 from 781.06 million tonnes a year earlier. Its consolidated profit after tax declined to ₹31,071 crore from ₹35,450 crore, while revenue from operations remained broadly stable at ₹1,68,400 crore, compared with ₹1,69,177 crore in FY25.
The proposed offerings would mark a resumption of government IPOs after a gap of more than two years. The last such offering was that of Indian Renewable Energy Development Agency Limited (IREDA) in FY24, when the government sold a 10 per cent stake.
The listing plans come as disinvestment and asset monetisation assume greater importance amid fiscal pressures. The government has raised ₹62,124 crore so far in FY27 and has effectively met its ₹80,000 crore target for miscellaneous capital receipts after including about ₹26,500 crore expected from the strategic disinvestment of IDBI Bank, which is nearing completion.
(With inputs from Saket Kumar)
