State-owned Coal India plans to sell a 10% stake in its subsidiary Mahanadi Coalfields (MCL) through an IPO. The PSU filed a DRHP with SEBI for an offer for sale of up to 66.18 crore shares, representing a 10% stake in the company.
State-owned coal mining and refining company Coal India is planning to sell a 10 per cent stake in Mahanadi Coalfields (MCL) through the fully owned subsidiary's initial public offering (IPO), as per the draft papers filed with Securities and Exchange Board of India (SEBI).
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.
IPO Details and DRHP Filing
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's Operations and Coal Reserves
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.
Book Running Lead Managers
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.
Company Promoters
"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 Stock Performance
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)
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