Mahanadi Coalfields IPO: Coal India Subsidiary Files RHP for 66.18 Crore Shares, Issue Estimated at ₹9,500 Crore – Indian PSU
The proposed initial public offering (IPO) of Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, has moved a step closer to launch with the filing of its Red Herring Prospectus (RHP).
Coal India informed the stock exchanges on Saturday that the RHP, dated November 13, 2026, has been filed with the Registrar of Companies (RoC), the Securities and Exchange Board of India (SEBI), BSE and NSE.
The proposed IPO will comprise an Offer for Sale (OFS) of up to 66,18,36,300 equity shares, representing 10% of Coal India’s stake in Mahanadi Coalfields.
The issue is estimated to generate approximately ₹9,500 crore for Coal India.
Coal India to Dilute 10% Stake
The proposed public offering is entirely an offer for sale by Coal India. There is no fresh issue of shares.
Consequently, the proceeds from the IPO will accrue to Coal India, the selling shareholder, and Mahanadi Coalfields will not receive any funds directly from the share sale.
The proposed divestment is part of Coal India’s strategy to unlock value from its large subsidiary companies by bringing them to the stock market.
Another Major Coal India Subsidiary Set for Listing
The proposed listing of Mahanadi Coalfields marks another significant step in Coal India’s subsidiary monetisation programme.
The company is among India’s major coal producers, with substantial mining operations in Odisha. Its stock market debut is expected to attract considerable investor attention given its position in India’s coal production ecosystem.
Coal India’s subsidiary-listing programme has already seen the listing of Bharat Coking Coal Limited and Central Mine Planning & Design Institute Limited in 2026.
The proposed MCL IPO, however, remains subject to applicable regulatory approvals, prevailing market conditions and other relevant considerations.
The filing of the RHP brings the proposed public offering closer to execution and marks an important milestone in Coal India’s efforts to unlock the value of its subsidiaries.
