Archive · 2 Sep 2026
Coal India Files Mahanadi Coalfields IPO For 10% Stake Sale
Coal India wants to sell part of a company it fully owns, called Mahanadi Coalfields.
The sale would offer 10% of Mahanadi Coalfields to public investors.
The shares already exist, so Mahanadi Coalfields will not create new shares.
This means the money raised will go to Coal India instead of Mahanadi Coalfields.
Mahanadi Coalfields operates mainly in Odisha and produces a large amount of coal.
Its profit and revenue fell during the financial year ending March 2026.
The company’s profit also fell slightly in the quarter ending June 2026.
The shares are proposed to be listed on India’s NSE and BSE exchanges.
Coal India filed preliminary papers to sell 661,836,300 existing Mahanadi Coalfields shares, representing a 10% stake.
The IPO is entirely an Offer for Sale, so Mahanadi Coalfields will receive no proceeds and all sale proceeds will go to Coal India.
Mahanadi Coalfields produced 218.31 million tonnes of coal in fiscal 2026 and operates primarily in Odisha.
Sources differ on its production share, citing about 21% or 22.4% of India’s output and 28% or 28.4% of Coal India’s production.
Mahanadi Coalfields reported fiscal 2026 net profit of ₹10,678 crore and revenue of ₹30,550 crore, while its June 2026 quarterly profit declined year-on-year.
- Who
- Coal India and its wholly owned subsidiary, Mahanadi Coalfields; Coal India Chairman and Managing Director B Sairam also discussed the planned listing.
- What
- Coal India plans to sell 661,836,300 shares, or a 10% stake, in Mahanadi Coalfields through an IPO structured entirely as an Offer for Sale.
- When
- The DRHP is dated August 31, 2026, and the filing was reported on September 2, 2026; the financial year ended March 31, 2026, and the latest quarter ended June 2026.
- Where
- Mahanadi Coalfields operates primarily in Odisha, India; the proposed shares are to be listed on the National Stock Exchange and BSE.
- Why
- The proposed listing is part of Coal India’s plan to unlock value from subsidiaries through capital markets; the exact timing will depend on market conditions and government directives.
- Stake offered
- 10% of Mahanadi Coalfields
- Shares offered
- 661,836,300 existing equity shares, or about 66.18 crore shares
- Issue structure
- Entirely an Offer for Sale; Mahanadi Coalfields will receive no proceeds
- Fiscal 2026 production
- 218.31 million tonnes of coal
- Fiscal 2026 financials
- Net profit of ₹10,678 crore, down 1.3%; revenue of ₹30,550 crore, down 2.6%
- June 2026 quarter
- Revenue from operations was ₹8,034 crore; net profit was ₹2,399 crore, compared with ₹2,448.3 crore a year earlier
- Issue managers
- SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services; KFin Technologies is the registrar
- Proposed investor allocation
- 50% for Qualified Institutional Buyers, 35% for retail investors and 15% for non-institutional investors
