Coal India Approved for Listing of Mahanadi Coalfields with a Potential 25% Stake Sale Through IPO and OFS

India’s largest coal producer, Coal India Ltd, announced on Friday (May 15) that the Department of Investment and Public Asset Management (DIPAM) has approved its proposal to list Mahanadi Coalfields Ltd (MCL) through a mix of fresh equity issuance (IPO) and disinvestment by Coal India via an offer for sale (OFS).

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

According to the approved plan, Coal India Ltd may divest its stake in Mahanadi Coalfields Ltd through an OFS of existing shares as part of the IPO, potentially in one or more phases.
Also Read: Coal India shares decline up to 3% following this CNBC-TV18 exclusive on a potential stake sale

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

The disinvestment and capital-raising efforts may occur either concurrently or separately, in one or more phases, with the overall cap set to reduce Coal India Ltd’s stake in MCL by up to 25%. The listing process is subject to current market conditions and the fulfillment of all necessary statutory and regulatory formalities.

The Prime Minister’s Office (PMO) has instructed the coal ministry to ensure all CIL subsidiaries are listed on stock exchanges by 2030. This initiative aims to streamline oversight, improve transparency, and unlock value via asset monetization.

ALSO READ | Coal India subsidiary reaches new post-listing high after surging by up to 20%

Coal India, which contributes over 80% of India’s domestic coal output, 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 previously given in-principle approval to divest up to 25% of its equity stake in SECL through an Offer for Sale (OFS), along with a new issuance of up to 10% equity through an initial public offer or other market avenues. Bharat Coking Coal Ltd was successfully listed on stock exchanges in January 2026, while Central Mine Planning & Design Institute Ltd made its debut on the NSE and BSE on March 30, 2026.

Shares of Coal India Ltd closed at ₹462.15, reflecting an increase of ₹8.35, or 1.84%, on the BSE today, May 15.