Shares of state-owned mining giant Coal India Limited witnessed a significant rally, climbing 3% during Wednesday's trading session to hit their highest price point in seven months. This surge marks the sixth consecutive day of gains for the Maharatna public sector undertaking (PSU) stock, bringing it close to its 52-week peak.
The Rally in Numbers
Coal India's share price reached an intraday high of ₹412.40 on the Bombay Stock Exchange (BSE). The stock is now inching towards its 52-week high of ₹417.25, fueled by robust buying activity. Over the past six trading sessions, the blue-chip stock has appreciated by an impressive 8%. Trading volumes also told a story of heightened interest, with 7.88 lakh shares changing hands by 11:55 AM, significantly surpassing the two-week average volume of 5.01 lakh shares.
Catalyst: Board Nod for Subsidiary Listings
The primary driver behind this sustained upward movement is a major corporate development. Coal India's board of directors has given in-principle approval for the stock market listing of its two major subsidiaries: South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL). The company made this announcement through an exchange filing on Tuesday, December 24, 2025.
This strategic decision follows a specific directive from the Ministry of Coal, which instructed Coal India to take concrete steps to list these two primary subsidiaries within the next financial year. The board's approval will now be forwarded to the Ministry of Coal for further submission to the Department of Investment and Public Asset Management (DIPAM). The final listings are contingent upon receiving all necessary regulatory approvals.
Why This Move Excites Investors
Market analysts view the approval for divesting stakes in subsidiaries as a fundamentally positive step for several reasons:
- Unlocks Value: Listing profitable subsidiaries can unlock significant value and cash for the parent company, Coal India.
- Sharpens Focus: It allows the core company to strengthen its focus on its primary business operations.
- Boosts Confidence: Such corporate restructuring initiatives enhance transparency and governance, thereby boosting overall investor confidence in the PSU.
The market's bullish response underscores the optimism surrounding this move, which is seen as aligning with the government's broader agenda of monetizing assets and improving the efficiency of state-owned enterprises. The rally in Coal India also contributed to positive sentiment across the PSU stock segment on the trading day.
