Coal India arm Mahanadi Coalfields files IPO papers, plans OFS of up to 66 cr shares

Mahanadi Coalfields Limited (MCL), one of India’s largest coal producers and a wholly owned subsidiary of Coal India Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), paving the way for its proposed initial public offering (IPO).

The proposed IPO comprises an offer for sale (OFS) of up to 661,836,300 equity shares, each with a face value of Rs 2, by promoter Coal India Limited. Since the issue is entirely an OFS, the proceeds from the share sale will accrue to the selling shareholder rather than the company.

The issue will be conducted through the book-building route. Not more than 50% of the net offer will be available for qualified institutional buyers, while non-institutional investors and retail individual investors will be allocated not more than 15% and 35%, respectively.


Incorporated in 1992, Odisha-based Mahanadi Coalfields has emerged as the largest coal-producing subsidiary of Coal India. In FY2026, the company produced 218.31 million tonnes (MT) of coal, accounting for around 22.40% of India’s total non-coking coal production and 28.3% of Coal India’s overall coal production, according to the CRISIL Report cited in the DRHP.

MCL’s coal production increased 5.92% from 206.10 MT in FY2024 to 218.31 MT in FY2026.

The company’s principal product is non-coking coal, including washed and beneficiated coal. Its customer base spans power utilities, captive power plants, independent power producers and non-power industries such as cement and sponge iron manufacturers.

MCL’s operations are anchored by the Talcher and Ib Valley coalfields in Odisha, which together had an estimated coal resource of approximately 106.76 billion tonnes as of April 1, 2026, according to the CRISIL Report.

The company’s audited coal reserves stood at 9,840.31 MT as of the same date. At its current production rate, these reserves could support mining operations for around 45 years.

The company could potentially extend its operational life by approximately another 100 years if additional resources are converted into reserves and production continues at broadly current levels, according to the CRISIL Report.

As of June 30, 2026, MCL operated 17 mines — 14 opencast and three underground. Opencast operations accounted for more than 99% of its coal production during the three months ended June 30, 2026, as well as in each of the previous three fiscal years.

The company has also built a significant coal evacuation infrastructure comprising coal handling plants, rapid loading systems, silos, rail connectivity and road networks.

MCL is connected to three railway zones — South Eastern Railway, South East Central Railway and East Coast Railway — helping it move coal to markets across India.

Its coal can also be transported through five ports: Paradip, Dhamra and Gopalpur in Odisha, and Vizag and Gangavaram in Andhra Pradesh.

Railways have become increasingly important to MCL’s evacuation strategy. In FY2026, railways accounted for 96.86% of first-mile-connectivity-based dispatches and 65.28% of total coal dispatches, compared with 91.27% and 58.70%, respectively, in FY2024.

MCL has also invested heavily in mechanised mining. As of June 30, 2026, the company had approximately 70 surface miners, including owned and contracted machines.

As of March 31, 2026, MCL owned 22 surface miners, the largest fleet among Coal India’s subsidiaries, out of Coal India’s total fleet of 47 surface miners, according to the CRISIL Report.

The company holds approximately 33,508.79 hectares (335.09 square kilometres) of land, including acquired and leased land. Of this, 167.37 square kilometres is located in the Talcher coalfield and 165.96 square kilometres in the Ib Valley coalfield.

As of June 30, 2026, MCL held mining and surface rights over 30,192.14 hectares across the two coalfields under the Coal Bearing Areas (Acquisition and Development) Act, 1957.

MCL reported revenue from operations of Rs 8,033.7 crore for the quarter ended June 30, 2026, up from Rs 7,548.3 crore in the corresponding period a year earlier.

However, its net profit declined marginally to Rs 2,398.7 crore, compared with Rs 2,448.3 crore in the June 2025 quarter.

MCL was incorporated on April 3, 1992, after being carved out of South Eastern Coalfields Limited to accelerate coal production from Odisha’s Talcher and Ib Valley coalfields and meet the country’s growing energy requirements.

MCL was granted Miniratna Category I status in December 2019. Alongside expanding production, MCL says it has implemented measures aimed at reducing its environmental footprint and strengthening sustainability across its mining operations.

The proposed IPO is expected to give public-market investors an opportunity to participate directly in one of India’s largest non-coking coal producers, backed by substantial reserves, established mining infrastructure and strong linkages to the power sector.

SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as the book-running lead managers for the issue, while KFin Technologies will act as the registrar.

The equity shares are proposed to be listed on the National Stock Exchange of India (NSE) and BSE.

With Coal India looking to monetise part of its holding through the OFS, MCL’s proposed listing could become one of the more closely watched public-market offerings from India’s coal and mining sector.

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