Mahanadi Coalfields files IPO papers

New Delhi: Mahanadi Coalfields Ltd (MCL) has filed preliminary papers with markets regulator Sebi for an initial public offering (IPO) through which its promoter Coal India Ltd will sell a 10 per cent stake.

The proposed IPO is entirely an Offer for Sale (OFS) of up to 66,18,36,300 equity shares by Coal India, with no fresh issue component, according to the draft red herring prospectus (DRHP) dated August 31. Since the issue comprises only an OFS, Odisha-based MCL will not receive any proceeds from the IPO.

The entire proceeds from the share sale will accrue to Coal India, the selling shareholder. The filing comes at a time when activity in the country’s primary market is gaining momentum after a relatively muted start to the year. Reacting to the news, shares of Coal India rose 5 per cent to an intra-day high of Rs 422.35 on the BSE.

Incorporated in 1992, MCL produced 218.31 million tonnes (MT) of coal in fiscal 2026, accounting for about 22.4 per cent of country’s total non-coking coal production, according to a CRISIL report cited in the draft papers.

MCL is also the largest coal-producing subsidiary of Coal India, contributing 28 per cent of the state-owned miner’s total coal production in fiscal 2026. Coal India accounts for more than 80 per cent of India’s domestic coal output.

The proposed listing is part of Coal India’s broader plan to unlock value from its subsidiaries through the capital markets. Coal India has already listed two subsidiaries this year — Bharat Coking Coal Ltd (BCCL) in January and Central Mine Planning & Design Institute Ltd (CMPDI) in March.

On Monday, Coal India Chairman and Managing Director B Sairam said the IPOs of two of its largest subsidiaries, South Eastern Coalfields Ltd (SECL) and MCL, will be completed within the current financial year.