The proposed issue is entirely an offer for sale (OFS), with Coal India planning to sell 66.18 crore shares, representing a 10% stake in Mahanadi Coalfields. Since the IPO does not include any fresh issue of shares, Mahanadi Coalfields will not receive any proceeds from the offering. The entire net proceeds will accrue to Coal India.
Mahanadi Coalfields primarily operates in Odisha and accounted for 21% of India’s total domestic coal production and 28.4% of Coal India’s production in FY26.
Coal India contributed around 74% of India’s total coal output in FY26. In March, the company had said it could divest up to 25% stakes in Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes.
Coal India has already listed two of its subsidiaries this year. Bharat Coking Coal, which made its market debut in January, is down around 25% from its listing price, while Central Mine Planning & Design Institute has gained around 39% since its March listing.
Mahanadi Coalfields reported a 1.3% year-on-year decline in net profit to ₹10,678 crore for the year ended March 31, while revenue fell 2.6% to ₹30,550 crore.
The IPO filing comes as activity in India’s primary market picks up after a relatively subdued start to the year, amid heightened market volatility following the US-Israel conflict with Iran.SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as the book-running lead managers to the issue.
The equity shares of Mahanadi Coalfields are proposed to be listed on both the BSE and NSE.
