Government Plans FY27 IPOs for IFCI, MCL and SECL

The government is preparing to list three public sector companies on the stock exchanges during FY27: IFCI, Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). 

DIPAM Secretary Arunish Chawla told Business Standard that the government is aiming to complete all three offerings within the current financial year. 

MCL IPO Preparations Begin 

MCL has already filed its draft red herring prospectus (DRHP). DIPAM has invited bids to appoint a registrar and share transfer agent, along with an advertising agency for the proposed IPO. 

Applications from eligible bidders can be submitted until November 3. 

Government to Receive IFCI IPO Proceeds 

The three offerings will have different implications for government finances. Proceeds from IFCI's IPO will go directly to the government, its sole shareholder. 

Money raised through stake sales in MCL and SECL will instead go to their parent company, Coal India. The government could benefit indirectly through dividends in FY28. 

MCL and SECL Report FY26 Results 

MCL produced 218.31 million tonnes of coal in FY26, the highest among Coal India's subsidiaries, and reported a net profit of ₹10,698 crore. 

SECL produced 176.29 million tonnes and posted a net profit of ₹7,755 crore. 

Coal India's Production and Profit Decline 

Coal India's total coal production fell to 768.19 million tonnes in FY26 from 781.06 million tonnes a year earlier. Consolidated profit after tax declined to ₹31,071 crore from ₹35,450 crore. 

Revenue from operations remained broadly stable at ₹1,68,400 crore, compared with ₹1,69,177 crore in FY25. 

IFCI Profit Falls 36% 

IFCI reported a net profit of ₹1,379 crore for FY26, down 36% year-on-year. Its net worth stood at ₹17,898 crore at the end of the financial year. 

The decline was attributed to mark-to-market losses on offshore borrowings amid foreign exchange fluctuations. 

Read More: India's Passenger Vehicle Dispatches Rise 21.8% to 4.54 Lakh Units in September 2026: Siam! 

Conclusion 

The proposed IPOs form part of the government's wider disinvestment programme. The government had raised ₹62,124 crore in FY27 at the time of the report. Including expected proceeds from IDBI Bank's strategic disinvestment, it had effectively met its ₹80,000 crore miscellaneous capital receipts target. 

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