Mahanadi Coalfields (MCL), a major subsidiary of Coal India, has filed its Draft Red Herring Prospectus with SEBI, marking an important development in India’s IPO market.
The proposed IPO will be entirely an Offer for Sale (OFS), under which Coal India plans to sell approximately 10% of its stake, or up to 66.18 crore shares.
Since the IPO is an OFS, the proceeds from the share sale will go to Coal India rather than Mahanadi Coalfields. The listing could help unlock value and provide investors with an opportunity to invest directly in one of India’s major coal-producing companies.
Mahanadi Coalfields has a significant presence in Odisha and plays an important role in India’s domestic coal production. According to recent reports, the company contributed significantly to Coal India’s production and reported a strong financial performance in FY26.
The IPO is also part of Coal India’s broader strategy to list its subsidiaries.
