Mahanadi Coalfields IPO: Coal India subsidiary Mahanadi Coalfields Ltd (MCL) has filed its Red Herring Prospectus (RHP) for its proposed initial public offering, bringing the public issue closer to launch. The IPO will give investors an opportunity to buy into one of India's largest coal producers, while allowing Coal India to unlock value from the subsidiary through a partial stake sale.

Coal India disclosed the development in an exchange filing on Saturday, November 14. It said, “the Red Herring Prospectus (RHP) dated 13th November, 2026 of Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, was filed with RoC, SEBI, BSE and NSE.”

The IPO is scheduled to open on November 19.

Coal India plans to divest up to 10% of its holding through an initial public offering comprising 66.18 crore shares.

The IPO is part of Coal India's strategy to unlock value through subsidiary listings. Bharat Coking Coal was listed in January 2026 and Central Mine Planning & Design Institute in March. South Eastern Coalfields has also filed draft IPO papers and is awaiting SEBI approval.

Key things to know

1. What is the Mahanadi Coalfields IPO size and valuation?

The IPO comprises an offer for sale of up to 66,18,36,300 equity shares, with a face value of ₹2 each. Coal India, the promoter and selling shareholder, will sell the entire stake on offer. There is no fresh issue component.

Its expected to be around ₹9,500 crore to ₹10,000 crore (approximately $1 billion). Meanwhile, its estimated valuation is likely to be up to $10 billion (roughly ₹83,000 crore to ₹90,000 crore) based on market reports and financial projections.

2. Where will the IPO proceeds go?

Since the issue is entirely an OFS, Mahanadi Coalfields will not receive any proceeds. The money, after applicable expenses and taxes, will go to Coal India.

3. When will the IPO open and close?

The issue will open on November 19 and close on November 23, 2026. Anchor investor bidding is scheduled for November 18. The tentative allotment date is November 25, while listing is expected on November 27.

4. What is the latest GMP?

The latest reported grey market premium (GMP) is ₹12.50 per share. GMP is an unofficial indicator and can change before listing. It does not guarantee listing gains.

Since the issue has not declared its price band yet, listing gains can't be estimated yet.

5. Has MCL announced its price band?

No. The RHP does not disclose the price band or final offer price. Consequently, the IPO's valuation and price-to-earnings multiple cannot yet be calculated. The price band is to be announced ahead of the issue.

6. How many shares are reserved for different investors?

The offer includes a reservation of up to 3.31 crore shares for eligible employees and 6.61 crore shares for eligible Coal India shareholders. After these reservations, the net offer comprises up to 56.25 crore shares. Of the net offer, up to 50% is available for QIBs, at least 15% for non-institutional investors and at least 35% for retail individual investors.

7. Who are the IPO's book-running lead managers?

SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services are the book-running lead managers. KFin Technologies is the registrar to the issue.

8. How much revenue and profit did MCL report?

MCL's revenue from operations stood at ₹30,549.59 crore in FY26, compared with ₹31,353.02 crore in FY25 and ₹31,634.35 crore in FY24. Profit attributable to owners was ₹10,677.74 crore in FY26, against ₹10,823.58 crore in FY25 and ₹11,841.37 crore in FY24.

For the six months ended September 2026, revenue rose to ₹16,093.04 crore from ₹14,724.54 crore a year earlier. Profit attributable to owners increased to ₹4,878.57 crore from ₹4,572.66 crore.

9. How much coal does Mahanadi Coalfields produce?

MCL produced 218.31 million tonnes and dispatched 210.74 million tonnes in FY26, making it India's largest single coal-producing company that year. It accounted for 21% of domestic coal production. In FY25, production was 225.17 million tonnes and dispatches stood at 210.45 million tonnes.

The company mined 99.4% of its FY26 coal through mechanised surface miners, supporting its large-scale, low-cost opencast operations.

10. What are MCL's expansion plans?

MCL plans to expand existing mines, develop new mining projects and increase coal beneficiation capacity to supply more washed coal. It is also developing first-mile connectivity facilities, silos, rapid-loading systems and rail infrastructure. The company has identified 12 first-mile connectivity facilities with an aggregate capacity of 240.50 million tonnes per year by FY30.

11. What are the key risks investors should watch?

MCL derives the bulk of its revenue from raw non-coking coal, making its business dependent on demand from the power sector. Its expansion plans also depend on timely environmental and forest clearances, land acquisition, rehabilitation and resettlement, contractor performance and evacuation infrastructure. The company has also cautioned that its coal reserve estimates are based on assumptions and actual reserves and production may differ.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.