The Mahanadi Coalfields IPO has received approval from the Securities and Exchange Board of India (SEBI), bringing Coal India’s subsidiary one step closer to its stock market debut. Through the proposed public issue, Coal India plans to sell up to 10% of its stake in Mahanadi Coalfields Limited (MCL) through an Offer for Sale (OFS) of approximately 66.18 crore equity shares.
The company has proposed to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). However, the IPO opening date, closing date, price band and lot size are yet to be announced.
Mahanadi Coalfields IPO: Issue Size and Structure
According to the draft red herring prospectus (DRHP), the proposed IPO will comprise an OFS of up to 66,18,36,300 equity shares, each having a face value of ₹2. The shares will be offered by the company’s promoter, Coal India Limited, which currently holds a 100% stake in MCL.
Since the issue is entirely an OFS, Mahanadi Coalfields will not receive any funds from the public offering. Instead, the proceeds from the share sale will go to Coal India.
The IPO will follow the book-building process. As per the proposed allocation structure, up to 50% of the net offer may be reserved for Qualified Institutional Buyers (QIBs), while at least 15% will be allocated to Non-Institutional Investors (NIIs). Retail individual investors will have a minimum reservation of 35%.
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. KFin Technologies will act as the registrar.
Mahanadi Coalfields IPO: Important Details
| Particulars | Details |
| Company | Mahanadi Coalfields Limited |
| Parent Company | Coal India Limited |
| Issue Type | Offer for Sale |
| Shares Offered | Up to 66.18 crore |
| Stake on Sale | Up to 10% |
| Face Value | ₹2 per share |
| Fresh Issue | None |
| Listing Exchanges | NSE and BSE |
| Registrar | KFin Technologies |
Mahanadi Coalfields Financial Performance
Mahanadi Coalfields has reported a decline in its annual revenue and profitability in FY26 compared with the previous financial year.
The company’s revenue from operations stood at ₹30,549.59 crore in FY26, against ₹31,353.02 crore in FY25, registering a decline of approximately 2.56%.
Its profit after tax (PAT) also declined to ₹10,698.12 crore in FY26 from ₹10,825.12 crore in the previous financial year. In FY24, the company had reported a profit of ₹11,841.55 crore.
For the quarter ended June 30, 2026, MCL reported revenue from operations of ₹8,033.77 crore, compared with ₹7,548.37 crore in the corresponding quarter last year. However, quarterly profit declined to ₹2,398.78 crore from ₹2,448.33 crore.
These financial figures will be important for investors evaluating the company’s business performance ahead of its proposed listing.
About Mahanadi Coalfields Limited
Established on April 3, 1992, Mahanadi Coalfields Limited is a wholly owned subsidiary of Coal India and operates in the mining and production of non-coking coal. The company was formed to accelerate coal production from Odisha’s Talcher and Ib Valley coalfields.
MCL holds Miniratna Category-I status, which it received in December 2019.
According to the CRISIL report mentioned in its DRHP, Mahanadi Coalfields produced 218.31 million tonnes of coal in FY26, accounting for approximately 22.40% of India’s total non-coking coal production. It also contributed around 28.3% of Coal India’s total coal production during the year.
As of June 30, 2026, the company operated 17 mines, including 14 opencast mines and three underground mines. Its operations are supported by coal-handling plants, rapid loading systems, silos and railway connectivity.
MCL supplies different grades of non-coking coal to power utilities, independent power producers, captive power plants and industries such as cement and sponge iron.
What Investors Should Know About the Mahanadi Coalfields IPO
The SEBI approval marks an important development in the company’s listing process. However, investors will have to wait for further announcements regarding the issue dates, price band, lot size and final valuation.
Since the proposed IPO is entirely an OFS, the public offering will primarily help Coal India monetise part of its investment in the subsidiary rather than provide fresh capital to Mahanadi Coalfields.
The company’s production scale, position in India’s coal industry and financial performance will remain important factors as the IPO moves towards launch.
Source: Moneycontrol – Mahanadi Coalfields IPO details | Mahanadi Coalfields DRHP filing details.
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