- State-owned Mahanadi Coalfields Ltd has filed for an IPO to list on Indian stock exchanges
- Coal India plans to sell up to 66.18 crore MCL shares in an offer for sale with no proceeds to MCL
- The IPO aims to unlock value from MCL, one of Coal India’s most profitable subsidiaries
State-owned Mahanadi Coalfields Ltd (MCL), one of Coal India Ltd's largest and most profitable subsidiaries, has filed papers for an initial public offering (IPO), paving the way for its listing on Indian stock exchanges. The proposed IPO will comprise an offer for sale (OFS) of up to 66.18 crore equity shares by Coal India, which is the promoter of MCL. The company will not receive any proceeds from the issue.
According to the draft offer documents, all proceeds from the IPO will accrue to the selling shareholder, Coal India, after deduction of offer-related expenses and applicable taxes.
SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as book-running lead managers, while KFin Technologies will act as the registrar to the offer.
The proposed listing follows the government's broader disinvestment programme. In May, the Department of Investment and Public Asset Management approved Coal India's proposal to divest up to 25% of its stake in Mahanadi Coalfields through a public issue.
Coal India had earlier indicated that it would initially work towards diluting 10% of its equity stake in MCL.
ALSO READ: D-Street To Defy US Market Slump? GIFT Nifty Signals Positive Start, But Weak IT ADRs Urge Caution
The proposed IPO will provide Coal India with an opportunity to unlock value from one of its most profitable subsidiaries while giving investors direct access to MCL's coal mining operations.
Mahanadi Coalfields operates several opencast and underground mines across Odisha, with a major presence in the Talcher and IB Valley coalfields. The company supplies coal to power utilities, steel manufacturers, cement companies and other industrial consumers.
MCL recorded its highest-ever coal production of 225.17 million tonnes (MT) in FY25, marginally exceeding its annual target of 225 MT and rising from 206.1 MT in FY24. Coal dispatches also reached a record 210.45 MT during FY25.
The company reported gross coal sales of Rs 36,606 crore in fiscal year 2025, compared with Rs 37,200 crore in fiscal year 2024. Profit after tax stood at Rs 10,823 crore, against Rs 11,845 crore a year earlier.
MCL's net worth increased to Rs 18,279 crore in FY25 from Rs 16,106 crore in FY24. The company also distributed a dividend of Rs 8,600 crore during the year, highlighting its strong cash-generating profile.
MCL's IPO comes after the successful listing of another Coal India subsidiary, Central Mine Planning and Design Institute Ltd (CMPDIL), earlier this year. CMPDIL's public offer raised Rs 1,842 crore. The Centre's move to list subsidiaries of Coal India is part of its broader strategy to monetise assets and unlock value from profitable public sector enterprises.
Coal India remains central to India's energy security as the country's largest coal producer, while MCL has emerged as one of its key growth engines due to its sizeable reserves, high production volumes and strategic presence in Odisha's coal-producing regions.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
