Mumbai: State-owned Coal India Limited is preparing to bring its subsidiary Mahanadi Coalfields Limited (MCL) to the stock market through an initial public offering (IPO) estimated at ₹9,500 crore.
The company has taken a significant step towards the proposed listing by filing its Red Herring Prospectus (RHP) with the relevant regulatory authorities.
According to a stock exchange disclosure, the RHP, dated November 13, 2026, has been submitted to the Registrar of Companies (RoC), Securities and Exchange Board of India (SEBI), BSE and National Stock Exchange (NSE).
IPO Size And Share Sale
The proposed public issue is expected to raise approximately ₹9,500 crore through an offer for sale (OFS) by Coal India.
Under the proposed transaction, the state-owned mining giant plans to sell up to 66.18 crore equity shares of Mahanadi Coalfields.
The offering will involve the sale of existing shares rather than the issuance of fresh equity.
Consequently, Mahanadi Coalfields will not receive any proceeds from the IPO. Instead, the funds raised will go to its parent company, Coal India, as the selling shareholder.
Coal India To Dilute 10% Stake
Coal India intends to divest approximately 10% of its equity holding in Mahanadi Coalfields through the proposed public offering.
The transaction is expected to generate around ₹9,500 crore, although the final proceeds will depend on the offer price and the number of shares sold.
The IPO remains subject to necessary regulatory approvals, prevailing market conditions and other relevant considerations.
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Subsidiary Listing Strategy
The proposed Mahanadi Coalfields IPO forms part of Coal India’s broader strategy to unlock value from its subsidiary businesses through stock market listings.
By offering minority stakes in these companies to public investors, Coal India aims to facilitate their entry into the listed equity market.
The proposed listing would also provide investors with an opportunity to gain direct exposure to Mahanadi Coalfields’ coal mining operations.
Further details regarding the IPO price band, subscription dates and listing schedule are awaited.
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