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Mahanadi Coalfields Ltd (MCL), a subsidiary of state-owned Coal India Ltd, has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its proposed initial public offering (IPO). The development brings the coal producer one step closer to entering the stock market, with the public issue expected to be launched in the second half of November or early December.
According to news agency PTI, citing sources, Sebi issued its final observations on MCL's draft offer documents on November 4. The regulator's observations mark an important milestone in the IPO process, allowing the company to move ahead with preparations for the public issue, subject to applicable regulatory requirements.
Bloomberg, citing people familiar with the matter, reported that Coal India is preparing to launch the share sale as early as this month. MCL has reportedly started investor meetings to gauge interest in the proposed offering.
The IPO could raise up to $1 billion (approximately ₹8,800 crore) and value Mahanadi Coalfields at as much as $10 billion, according to the Bloomberg report.
MCL filed its draft red herring prospectus (DRHP) with Sebi in September. According to the draft documents, the proposed IPO will be entirely an offer for sale (OFS) by promoter Coal India.
The public issue will involve the sale of up to 66,18,36,300 equity shares held by Coal India. Since the offering is an OFS, Mahanadi Coalfields will not receive any proceeds from the IPO. The entire amount raised will go to Coal India as the selling shareholder.
SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as book-running lead managers for the proposed issue.
The company's shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Incorporated in 1992, Mahanadi Coalfields is the largest coal-producing subsidiary of Coal India.
According to a CRISIL report cited in the draft prospectus, the company produced 218.31 million tonnes of coal in FY26, accounting for approximately 22.4% of India's total non-coking coal production.
MCL contributed around 28% of Coal India's overall coal production during the same financial year. Coal India, meanwhile, accounts for more than 80% of the country's domestic coal output.
As of June 30, 2026, MCL operated 17 mines, comprising 14 opencast mines and three underground mines.
MCL reported revenue from operations of ₹8,034 crore for the quarter ended June 2026, compared with ₹7,548.3 crore in the corresponding quarter of the previous year.
However, the company's net profit declined marginally to ₹2,399 crore from ₹2,448.3 crore during the year-ago period.
The proposed MCL listing is part of Coal India's broader strategy to unlock value from its subsidiaries through the capital markets.
The IPO could emerge as one of India's biggest public issues in the remaining months of 2026, with several large companies preparing to tap the primary market during November and December.
The proposed listing will also provide investors an opportunity to gain exposure to one of India's largest coal-producing businesses through the stock market.
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