Coal India gets nod for Mahanadi Coalfields listing with up to 25% stake sale via IPO, OFS – CNBC TV18

The country’s largest coal producer, Coal India Ltd, on Friday (May 15), said the Department of Investment and Public Asset Management (DIPAM) has approved the proposal for the listing of Mahanadi Coalfields Ltd (MCL) through a combination of fresh equity issuance (IPO) and disinvestment by Coal India through an offer for sale (OFS).

The proposal, processed by DIPAM and the Ministry of Coal based on approvals from the boards of Coal India Ltd and MCL, relates to the listing of Mahanadi Coalfields Ltd in the domestic market under SEBI rules and regulations.

As per the approved structure, Coal India Ltd may disinvest its stake in Mahanadi Coalfields Ltd through an OFS of existing shares as part of the IPO and subsequently in one or more tranches.

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Mahanadi Coalfields Ltd may raise capital through fresh issue of equity shares as part of the IPO and/or through subsequent FPOs, QIPs or other SEBI-approved methods.

The disinvestment and capital raising may be undertaken either simultaneously or separately, in one or more tranches, with the overall limit set at reducing Coal India Ltd’s shareholding in MCL by up to 25%. The listing process will remain subject to prevailing market conditions and completion of all statutory and regulatory formalities.

The Prime Minister’s Office (PMO) has directed the coal ministry to ensure that all subsidiaries of CIL are listed on stock exchanges by 2030. The move is aimed at streamlining oversight, enhancing transparency, and unlocking value through asset monetisation.

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Coal India, which accounts for over 80% of India’s domestic coal production, currently operates through eight subsidiaries: Eastern Coalfields Ltd, Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd, Western Coalfields Ltd, South Eastern Coalfields Ltd (SECL), Northern Coalfields Ltd, MCL, and Central Mine Planning & Design Institute Ltd (CMPDIL).

The Coal India board had earlier given in-principle nod for divesting up to 25% of its equity stake in SECL through Offer for Sale (OFS), alongside a fresh issuance of up to 10% equity through initial public offer or other market routes. Bharat Coking Coal Ltd was successfully listed on stock exchanges in January 2026, and Central Mine Planning & Design Institute Ltd was listed on the NSE and BSE on March 30, 2026.

Shares of Coal India Ltd ended at ₹462.15, up by ₹8.35, or 1.84%, on the BSE today, May 15.

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