Coal India has moved towards listing its subsidiary Mahanadi Coalfields through an IPO. The company plans to sell a 10% stake in the subsidiary, according to draft documents filed with the market regulator.
The proposed IPO is significant because it could unlock value from one of Coal India’s important subsidiaries and bring greater visibility to Mahanadi Coalfields as an independent listed entity.
Coal India was also among the relatively stronger stocks during Wednesday’s weak market session after reporting a 5.5% rise in August coal supplies. Investors will now watch the IPO timeline and further details regarding the proposed public issue.
