Mahanadi Coalfields Files DRHP for 66.18 Crore-Share OFS
MCL follows the proposed and recent listings of other Coal India subsidiaries, including BCCL and CMPDI
Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, has taken a major step towards its proposed stock-market listing by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The DRHP was filed on August 31, 2026, for an Initial Public Offering (IPO) of Mahanadi Coalfields. The proposed issue will comprise an Offer for Sale (OFS) of up to 66.18 crore equity shares, representing a 10% stake in the company.
Entire IPO to be an Offer for Sale
The Mahanadi Coalfields IPO will be entirely an OFS by its parent company, Coal India Limited. There will be no fresh issue of shares, meaning MCL itself will not receive any proceeds from the IPO.
The entire net proceeds from the OFS will accrue to Coal India. The proposed shares are expected to be listed on both the BSE and NSE.
The merchant bankers appointed for the issue include SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services.
Mahanadi Coalfields: A Major Coal Producer
Mahanadi Coalfields is one of Coal India’s largest subsidiaries and operates primarily in Odisha. The company produced 218.31 million tonnes of coal in FY 2025-26, accounting for approximately 22.40% of India’s total non-coking coal production, according to a CRISIL report cited in the DRHP-related coverage.
MCL also accounted for around 21% of India’s domestic coal production and 28.4% of Coal India’s total production in FY26, underlining its importance within the country’s coal-mining sector.
Financial Performance
Mahanadi Coalfields reported a profit of ₹2,399 crore in the quarter ended June 2026, compared with ₹2,448.3 crore in the corresponding quarter of the previous year, marking a decline of around 2%.
Revenue during the quarter rose 6.4% to ₹8,033.8 crore, compared with ₹7,548.4 crore a year earlier.
For FY 2025-26, MCL reported a profit of approximately ₹10,698.1 crore, while revenue stood at around ₹30,549.6 crore.
Part of Coal India’s Subsidiary Listing Strategy
The proposed Mahanadi Coalfields IPO is part of Coal India’s broader strategy to unlock value from its subsidiaries through stock-market listings.
MCL follows the proposed and recent listings of other Coal India subsidiaries, including Bharat Coking Coal Limited (BCCL) and Central Mine Planning & Design Institute (CMPDI). Coal India has been pursuing the listing of its subsidiaries as part of the government’s broader disinvestment and value-unlocking strategy.
With Mahanadi Coalfields being one of the country’s largest coal producers, its proposed IPO is expected to attract significant attention from institutional as well as retail investors.
The filing of the DRHP marks an important milestone in the process, although the final IPO size, price band, issue dates and other details will be announced at a later stage, subject to regulatory approvals.
