Coal India has proposed selling 10% of Mahanadi Coalfields Limited through an IPO of existing shares, a structure that would send proceeds to the parent rather than fund the coal producer.
The draft prospectus covers up to 661,836,300 shares, each with a face value of ₹2. It identifies the sale as 10% of Mahanadi Coalfields, a wholly owned Coal India subsidiary. Since Coal India would sell shares it already owns, the transaction would not issue new shares in the coal producer. The prospectus says the proceeds would go to Coal India, with none going to Mahanadi Coalfields.
Bloomberg reported Nov. 3, citing people familiar with the plans, that the IPO might raise as much as $1 billion and value Mahanadi Coalfields at up to $10 billion. Bloomberg also reported that investor meetings had begun and gave a possible launch window from the second half of November to early December. The prospectus does not set an offer value, price band or opening date, so those figures and timing are reported expectations rather than confirmed terms.
The Securities and Exchange Board of India (SEBI) listed the draft as received Sept. 3 and recorded that it issued observations Oct. 15 in a processing report dated Nov. 9. Coal India said the IPO depends on receiving the required approvals and on market conditions, among other considerations.
For fiscal 2026 (FY26), the prospectus puts Mahanadi Coalfields’ coal output at 218.31 million tonnes, about 22.4% of India’s non-coking coal production and 28.3% of Coal India’s output. The prospectus, citing CRISIL, identifies it as India’s largest coal producer by output that year. Its operations include Odisha’s Talcher and Ib Valley coalfields.
The prospectus lists restated consolidated revenue from operations of ₹30,549.59 crore for FY26, down from ₹31,353.02 crore in FY25. Profit after tax was ₹10,698.12 crore, compared with ₹10,825.12 crore a year earlier. FY26 ended March 31, 2026.
Another Coal India subsidiary, South Eastern Coalfields Limited, has filed draft papers for a share sale. The Mahanadi Coalfields prospectus gives no opening date or offer price.
