Coal India to Sell 10% Stake in Mahanadi Coalfields via IPO

Coal India to sell 10 pc stake in Mahanadi Coalfields through IPO

New Delhi, September 2

As per an exchange filing, the PSU is planning to sell up to 66.18 crore shares of MCL, representing a 10 per cent stake in the company. According to the draft red herring prospectus (DRHP), each share has a face value of Rs 2, and the proposed issue will comprise entirely an offer for sale (OFS).

"Pursuant to Regulation 30 of the SEBI LODR, 2015, it is hereby informed that the draft red herring prospectus dated 1st September, 2026 of Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, was filed with SEBI, BSE and NSE," Coal India said in an exchange filing, adding "The DRHP filing pertains to the proposed Initial Public Offering ("IPO") of MCL, comprising an Offer for Sale of up to 661,836,300 equity shares having a face value of INR 2 each, held by Coal India Limited."

However, the IPO is still subject to regulatory approvals and market conditions.

MCL majorly operates in Odisha and has accounted for 21 per cent of India's total domestic coal production and 28.4 per cent of Coal India's production in FY26.

"As at April 1, 2026, our audited coal reserves stood at 9,840.31 MT which would sustain our production operation for around 45 years considering the present production level," MCL said in the DRHP.

SBI Capital Markets Limited, Axis Capital Limited, BOB Capital Markets Limited, IDBI Capital Markets & Securities Limited, IIFL Capital Service Ltd., are the book running lead managers to the issue. "The Promoters of our Company are the President of India, acting through the Ministry of Coal, Government of India and Coal India Limited," the DRHP reads.

Coal India shares were trading at Rs 419.40 per share, up 16.90 points or 4.20 per cent at around 11:25 AM against the previous close of Rs 402.50 per share. The company has m-cap of Rs 2,58,372.39 crore as of September 2, as per the data available on BSE.

— ANI