The Indian government is preparing to list three more public sector undertakings (PSUs) on the domestic stock exchanges during the current financial year (FY27). India Infrastructure Finance Company Ltd (IIFCL), Mahanadi Coalfields Ltd (MCL), and South Eastern Coalfields Ltd (SECL) are the companies slated for initial public offerings (IPOs), as confirmed by Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM).
This strategic initiative marks a significant push to introduce new state-owned enterprises to the public market, complementing the government's ongoing stake-sale programs in already listed PSUs.
Progress on Listings
According to DIPAM Secretary Chawla, all three companies are considered “market-ready.” The draft red herring prospectus (DRHP) for Mahanadi Coalfields Ltd has already been submitted, indicating advanced preparations for its public offering. Work is actively underway to prepare IIFCL and SECL for their respective listings.
The government's decision to pursue these major listings reflects a broader strategy to mobilize capital and enhance transparency within the public sector, offering new investment avenues for the public.
Introducing the PSUs
- India Infrastructure Finance Company Ltd (IIFCL): Established in 2006, IIFCL is a wholly government-owned financial institution. Its primary role is to provide long-term funding for critical infrastructure projects across various sectors, including roads, power, and public-private partnerships. Its listing would offer investors direct exposure to India's burgeoning infrastructure financing landscape.
- Mahanadi Coalfields Ltd (MCL): A key subsidiary of Coal India Ltd, MCL operates significant coal mines in Odisha's Talcher and Ib Valley coalfields. Incorporated in 1992 and headquartered in Sambalpur, MCL's IPO would allow investors to directly participate in the performance of one of India's major coal-producing entities.
- South Eastern Coalfields Ltd (SECL): Another prominent subsidiary of Coal India Ltd, SECL is headquartered in Bilaspur, Chhattisgarh. Established in 1985, the company manages coal mining operations primarily in Chhattisgarh and Madhya Pradesh. A listing for SECL would provide a distinct investment opportunity within Coal India's extensive coal production operations.
Second Public InvIT Also Planned
In addition to these three PSU listings, the government is also preparing to launch its second public infrastructure investment trust (InvIT) during FY27. This new InvIT will be backed by identified stretches of national highways. This follows the success of the government's first public InvIT, which launched in March 2026 and successfully raised approximately ₹9,200 crore.
InvITs serve as a mechanism to channel private capital into infrastructure assets that generate stable income, thereby facilitating the recycling of funds back into further infrastructure development.