Coal India Set To Unlock Value From Mahanadi Coalfields, ₹9,500 Crore IPO Moves Ahead With RHP Filing

Mumbai: State-owned Coal India Limited has taken a major step towards listing its subsidiary Mahanadi Coalfields Limited (MCL), with the company filing its Red Herring Prospectus (RHP) for a proposed initial public offering (IPO) estimated at approximately ₹9,500 crore.

The proposed public issue will involve the sale of a 10% stake by Coal India, as the mining major looks to unlock value from its subsidiary businesses.

IPO Filing Details

According to Coal India's regulatory disclosure, Mahanadi Coalfields filed its RHP dated November 13, 2026, with the Registrar of Companies (RoC), Securities and Exchange Board of India (SEBI), BSE and National Stock Exchange (NSE). The filing marks an important development in the proposed listing process.

However, the company clarified that the public issue remains subject to applicable regulatory approvals, prevailing market conditions and other relevant considerations.

₹9,500 Crore Share Sale

The Mahanadi Coalfields IPO will comprise an offer for sale (OFS) of up to 66.18 crore equity shares by its parent company, Coal India. The shares represent 10% of the subsidiary's equity.

The proposed issue is expected to raise approximately ₹9,500 crore, although the final proceeds will depend on the offer price and shares sold. Since the IPO is structured entirely as an OFS, the proceeds will go to the selling shareholder rather than Mahanadi Coalfields.

Coal India's Listing Strategy

The proposed IPO forms part of Coal India's broader strategy to monetise its investments and unlock shareholder value through subsidiary listings.

A successful listing would provide investors with an opportunity to gain direct exposure to Mahanadi Coalfields' operations. It would also allow Coal India to realise value from a portion of its holding while retaining majority ownership.

What Investors Should Watch

Market participants will now await further announcements regarding the IPO price band, subscription dates and listing schedule.

The proposed ₹9,500 crore issue remains dependent on regulatory clearances and market conditions.

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