Coal India subsidiary plans to raise ₹9,500cr via IPO
What's the story
Mahanadi Coalfields Ltd (MCL), a wholly-owned subsidiary of Coal India, has filed its Red Herring Prospectus (RHP) for an initial public offering (IPO). The document was submitted on November 13 with the Registrar of Companies (RoC), Securities and Exchange Board of India (SEBI), Bombay Stock Exchange (BSE), and National Stock Exchange (NSE). The proposed IPO includes an offer for sale of up to 66.18 crore equity shares by Coal India.
Financial details
Coal India's strategy to unlock value in its subsidiaries
The IPO is expected to raise around ₹9,500 crore.
However, the final execution of this public issue will depend on receipt of applicable approvals and market conditions.
The move is part of Coal India's strategy to unlock value in its subsidiaries through stake sales and their subsequent listing on stock exchanges.
Operational performance
MCL produced over 218 million tons of coal in FY26
MCL was India's largest single coal-producing company in FY26, producing 218.31 million tons of coal and dispatching 210.74 million tons.
The company contributed to 21% of domestic coal production during this period.
It achieved these numbers by using mechanized surface miners for almost all its coal mining activities, thereby supporting large-scale and cost-effective opencast operations.
Future prospects
Expansion plans and risks for investors
MCL intends to expand existing mines, develop new mining projects, and increase coal beneficiation capacity for more washed coal supply.
The company is also developing first-mile connectivity facilities, silos, rapid-loading systems, and rail infrastructure as part of its expansion strategy.
However, investors should note that MCL's business largely depends on the power sector's demand for raw non-coking coal.