Coal India said to plan $1 billion MCL IPO as soon as this month
Coal India is preparing a $1 billion IPO of its subsidiary Mahanadi Coalfields, potentially launching in late November or early December 2026. The offer will involve a 10% stake sale by the parent, valuing MCL at up to $10 billion. MCL contribute...
By Bloomberg |
Bloomberg
The IPO will consist entirely of shares sold by parent Coal India, with no fresh issuance, according to the draft prospectus filed with Sebi.
State-owned Coal India Ltd. is preparing to launch an initial public offering of its unit Mahanadi Coalfields Ltd. as early as this month, according to people familiar with the matter.
The company has begun investor meetings and is looking to kick off the share sale in the second half of November or early December, the people said, asking not to be identified because the information is private. The offering could raise as much as $1 billion and value Mahanadi Coalfields at as much as $10 billion, they said.
Deliberations are ongoing and details including the size, valuation and timing of the offering could still change, the people said.
Representatives for Coal India and Mahanadi Coalfields didn’t respond to requests for comment.
The IPO will consist entirely of shares sold by parent Coal India, with no fresh issuance, according to the draft prospectus filed with the Securities and Exchange Board of India. Coal India, which owns 100% of Mahanadi Coalfields, plans to sell as many as 661.84 million shares, representing a 10% stake, the prospectus shows.
SBI Capital Markets Ltd., Axis Capital Ltd., BOB Capital Markets Ltd., IDBI Capital Markets & Securities Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the offering, according to the prospectus.
Mahanadi Coalfields could be among the biggest Indian IPOs still to come this year, with several offerings lined up for November and December. Companies have raised about $18.48 billion through IPOs in India so far in 2026, putting the market within reach of the record $22.36 billion raised in 2025. Separately, Coal India unit South Eastern Coalfields Ltd. has filed for an IPO as well.
Mahanadi Coalfields was India’s largest coal producer by output in the fiscal year ended March 2026, producing 218.31 million tonnes, according to its prospectus. That accounted for about 22.4% of the country’s total non-coking coal production. As of June 30, the company operated 17 mines, comprising 14 open-cast mines and three underground mines, the prospectus shows.
The company has begun investor meetings and is looking to kick off the share sale in the second half of November or early December, the people said, asking not to be identified because the information is private. The offering could raise as much as $1 billion and value Mahanadi Coalfields at as much as $10 billion, they said.
Deliberations are ongoing and details including the size, valuation and timing of the offering could still change, the people said.
Representatives for Coal India and Mahanadi Coalfields didn’t respond to requests for comment.
The IPO will consist entirely of shares sold by parent Coal India, with no fresh issuance, according to the draft prospectus filed with the Securities and Exchange Board of India. Coal India, which owns 100% of Mahanadi Coalfields, plans to sell as many as 661.84 million shares, representing a 10% stake, the prospectus shows.
SBI Capital Markets Ltd., Axis Capital Ltd., BOB Capital Markets Ltd., IDBI Capital Markets & Securities Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the offering, according to the prospectus.
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Mahanadi Coalfields could be among the biggest Indian IPOs still to come this year, with several offerings lined up for November and December. Companies have raised about $18.48 billion through IPOs in India so far in 2026, putting the market within reach of the record $22.36 billion raised in 2025. Separately, Coal India unit South Eastern Coalfields Ltd. has filed for an IPO as well.
Mahanadi Coalfields was India’s largest coal producer by output in the fiscal year ended March 2026, producing 218.31 million tonnes, according to its prospectus. That accounted for about 22.4% of the country’s total non-coking coal production. As of June 30, the company operated 17 mines, comprising 14 open-cast mines and three underground mines, the prospectus shows.
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