Coal India plans $1 billion IPO for Mahanadi Coalfields
The state-owned company may launch the share sale in late November or early December, according to BusinessLine.
State-owned Coal India Ltd. is preparing to launch an initial public offering (IPO) of its unit, Mahanadi Coalfields Ltd., as early as this month, according to reports by BusinessLine and Moneycontrol.
The company has started investor meetings and aims to begin the sale in the second half of November or early December. The offering could raise up to $1 billion and value the unit at as much as $10 billion, though details regarding timing and valuation may change.
According to the draft prospectus filed with the Securities and Exchange Board of India (SEBI), the IPO will consist entirely of shares sold by the parent company, Coal India, with no fresh issuance. Coal India, which holds a 100% stake in Mahanadi Coalfields, plans to sell up to 661.84 million shares, representing a 10% stake.
Mahanadi Coalfields was the top coal producer in India by volume during the fiscal year ending March 2026. It produced 218.31 million tonnes, which was approximately 22.4% of the nation's total non-coking coal production.
As of June 30, the company managed 17 mines, including 14 open-cast and three underground mines. Separately, another Coal India unit, South Eastern Coalfields Ltd., has also filed for an IPO.
SBI Capital Markets Ltd., Axis Capital Ltd., BOB Capital Markets Ltd., IDBI Capital Markets & Securities Ltd., and IIFL Capital Services Ltd. are the book-running lead managers for the offering. Representatives for Coal India and Mahanadi Coalfields did not respond to requests for comment.
