Coal India Ltd. is preparing to launch the coalfields IPO of its subsidiary, Mahanadi Coalfields Ltd., as early as November. The proposed public offering could raise up to $1 billion and value the company at nearly $10 billion.
The company has started investor meetings and is targeting the second half of November or early December for the share sale, according to people familiar with the matter. They requested anonymity as the discussions are private.
However, the proposed issue details, including its size, valuation and timing, remain under discussion and could change. Representatives of Coal India and Mahanadi Coalfields did not respond to requests for comment.
Key Highlights:
- The proposed IPO could raise up to $1 billion.
- Coal India plans to sell a 10% stake in Mahanadi Coalfields.
- The company produced 218.31 million tonnes of coal in FY26.
Coal India Plans 10% Stake Sale Through IPO
According to the draft prospectus filed with the Securities and Exchange Board of India (SEBI), the coalfields IPO will be entirely an offer for sale (OFS).
Coal India, which owns 100% of Mahanadi Coalfields, plans to sell up to 661.84 million shares. This represents a 10% stake in the subsidiary. The issue will not include any fresh share issuance.
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 for the offering.
The proposed listing could become one of India's biggest IPOs in the remaining months of 2026. Indian companies have raised approximately $18.48 billion through IPOs so far this year, bringing the market closer to the 2025 record of $22.36 billion.
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Mahanadi Coalfields Leads India's Coal Production
Mahanadi Coalfields was India's largest coal producer by output in the financial year ended March 2026. It produced 218.31 million tonnes, accounting for approximately 22.4% of the country's total non-coking coal production.
As of June 30, 2026, the company operated 17 mines. These included 14 open-cast mines and three underground mines, according to its prospectus.
Meanwhile, another Coal India subsidiary, South Eastern Coalfields Ltd., has also filed for an IPO. The proposed listings reflect the state-owned coal producer's plans to unlock value from its subsidiaries through the capital markets.
