Coal India Plans $1 Billion Mahanadi Coalfields IPO In November Or Early December; Subsidiary Could Be Valued At $10 Billion

Coal India is preparing to take its subsidiary Mahanadi Coalfields Ltd. (MCL) public, with the proposed $1 billion initial public offering (IPO) potentially hitting the market in the second half of November or early December. The state-owned coal producer has already started meeting investors ahead of the share sale, according to people familiar with the matter.

The proposed IPO could value Mahanadi Coalfields at as much as $10 billion. However, discussions are still underway, and the issue size, valuation and launch date may change, the people said.

The listing will be another step in Coal India's plan to unlock value from its subsidiaries by bringing them to the stock market.

Mahanadi Coalfields IPO To Be Entirely An Offer For Sale

Coal India plans to sell up to 66.18 crore shares of Mahanadi Coalfields through the IPO. This represents a 10% stake in the subsidiary, which is currently wholly owned by the parent company.

There will be no fresh issue of shares. The proposed Mahanadi Coalfields IPO will be entirely an offer for sale (OFS), meaning the proceeds from the share sale will go to Coal India rather than Mahanadi Coalfields.

The company has already filed its draft prospectus with the Securities and Exchange Board of India (SEBI). SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as book-running lead managers.

The investor meetings suggest that preparations for the issue are moving ahead, although the final offer details are yet to be settled.

Mahanadi Coalfields Eyed Among 2026's Top IPOs

If the proposed issue goes ahead at the indicated size, Mahanadi Coalfields could become one of the largest IPOs in India's pipeline for November and December.

Indian companies have already raised around $18.48 billion through IPOs in 2026, putting the market within reach of last year's record fundraising of $22.36 billion. A $1 billion MCL offering would add to the year's fundraising total.

Coal India's other subsidiary, South Eastern Coalfields Ltd., has also filed draft papers for a public issue. Its proposed offering will similarly involve a sale of shares by the parent company.

Mahanadi Coalfields Output Reaches 218 MT

Mahanadi Coalfields is a major part of India's domestic coal supply. It was the country's largest coal producer by output in the financial year ended March 2026, with production of 218.31 million tonnes. That accounted for around 22.4% of India's total non-coking coal production during the year, according to its draft prospectus.

As of 30 June 2026, the company operated 17 mines. These included 14 open-cast mines and three underground mines.

Its production scale makes the proposed listing an important one for Coal India. The parent company will be able to sell a part of its holding through the IPO, while investors will get an opportunity to own shares in one of the country's largest coal producers.

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