Mahanadi Coalfields gets Sebi approval for IPO; Coal India to offload 66.18 crore shares via OFS
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Odisha-based Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, has received approval from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The proposed IPO will be entirely an offer for sale (OFS), through which promoter Coal India plans to sell up to 66.18 crore equity shares with a face value of ₹2 each.
MCL had filed its draft red herring prospectus (DRHP) with the capital markets regulator in September 2026. The equity shares are proposed to be listed on the National Stock Exchange of India (NSE) and BSE.
As per the IPO document filed with Sebi, the company has reserved 50% of the issue for qualified institutional buyers (QIBs), while the quotas for non-institutional investors and retail individual investors have been fixed at 15% and 35%, respectively.
Incorporated in 1992, MCL is India's largest coal producer in terms of output. It produced 218.31 million tonnes of coal in FY26, accounting for approximately 22.4% of the country's total non-coking coal production. It is also the largest coal-producing subsidiary of Coal India, contributing 28.3% to the parent company's total output in FY26.
The company operates across the Talcher and Ib Valley coalfields in Odisha, with an estimated coal resource base of 106.76 billion tonnes as of April 1, 2026. Its audited coal reserves stood at 9,840.31 million tonnes, which could sustain production at current levels for around 45 years. Further conversion of resources into reserves could potentially extend its operational life by approximately 100 years.
MCL's operations comprise 17 mines, including 14 opencast and three underground mines, supported by coal handling plants, silos, rapid loading systems and rail connectivity. Its coal is primarily supplied to power utilities, captive power plants and independent power producers, as well as industries such as cement and sponge iron.
Reports ₹8,034 crore revenue in Q1 FY27
MCL reported revenue from operations of ₹8,033.7 crore for the quarter ended June 2026, compared with ₹7,548.3 crore in the corresponding period a year earlier. However, net profit declined to ₹2,398.7 crore from ₹2,448.3 crore in the year-ago quarter.
The company's coal production increased 5.92% from 206.10 million tonnes in FY24 to 218.31 million tonnes in FY26.
The proposed IPO is an OFS, which means the proceeds from the share sale will go to Coal India, the selling shareholder, and not to MCL.
SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.