SEBI approves Mahanadi Coalfields IPO; Coal India to sell stake

India's capital market regulator, SEBI, has approved the IPO of the state-owned mining company Mahanadi Coalfields. This proposed offering could be one of the largest proposed listings this year. According to a Bloomberg report, the company could raise up to $1 billion through this IPO, and Mahanadi Coalfields could be valued at up to $10 billion.

As per the draft prospectus, its parent company, Coal India, plans to sell 661.8 million shares of Mahanadi Coalfields. Through this process, Coal India will sell a 10% stake in its subsidiary. This information was provided in the draft papers filed in September. According to a Bloomberg report, Coal India is preparing to launch the Mahanadi Coalfields IPO this month itself.

Mahanadi Coalfields operates primarily in eastern Odisha. In financial year 2026, the company accounted for 21% of India's total domestic coal production and 28.4% of Coal India's total coal production. Earlier in March, Coal India had stated that it could sell up to a 25% stake in its subsidiaries, Mahanadi Coalfields and South Eastern Coalfields, through an IPO or other means.

Coal India's share in India's total coal production in financial year 2026 was approximately 74%. This year, major listings such as Jio Platforms and National Stock Exchange of India have been seen in the Indian capital markets, indicating that investors are eager for large listings.

Coal India Limited (CIL) was India's state-owned coal mining company headquartered in Kolkata. It was the world's largest coal producing company based on production and operated under the administrative control of the Ministry of Coal.