Mahanadi Coalfields IPO Greenlit as Coal India Moves to Offload Up to 25% Stake.
On May 15, 2026, Coal India Ltd announced that it has received approval from the Alternative Mechanism (AM) to list its wholly-owned subsidiary, Mahanadi Coalfields Ltd (MCL), on the Indian domestic exchanges, namely the NSE and BSE. This approval allows Coal India to reduce its 100% ownership in MCL by up to 25% through a combination of an offer for sale (OFS) and a fresh equity issuance by MCL. Key listing details including issue size, pricing, and merchant bankers are still pending as the process awaits SEBI clearance and favorable market conditions.
MCL, which operates the significant Talcher and IB Valley coalfields in Odisha, has shown robust financial growth, achieving FY25 revenues of approximately ₹36,606 crore and a profit after tax of ₹10,823 crore. The company is responsible for about 29% of Coal India’s overall output. The upcoming IPO, if successfully executed, could become one of the largest disinvestments in recent years, considering its size and profitability within the context of the broader public sector undertaking (PSU) IPO pipeline in India. Market watchers are keen on the forthcoming appointment of Book Running Lead Managers (BRLMs) as it typically indicates a timeline for the Draft Red Herring Prospectus (DRHP).
Grey market sentiment surrounding this IPO remains cautious, as the market awaits crucial details such as pricing and the structure of the final offering. Indian investors should closely monitor the developments leading up to the IPO, particularly the valuation benchmarking, as MCL lacks direct comparable peers in the thermal coal sector. The upcoming listing not only signifies a strategic disinvestment route for Coal India but also represents an opportunity for investors interested in the energy sector’s growth trajectory, particularly one aligned with India’s focus on coal production and energy sustainability.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)