State-owned Mahanadi Coalfields Ltd (MCL), one of Coal India Ltd's largest and most profitable subsidiaries, has invited investment banks to pitch for managing its proposed initial public offering (IPO). According to reports from Moneycontrol, the banker presentations are expected to be held in Kolkata in August, with the proposed public issue worth around ₹10,000 crore. The offer size and structure will be finalised closer to the launch, with the IPO expected to be largely an offer for sale under which Coal India will dilute part of its holding, though it may include a small primary fundraise too.
In May, the Department of Investment and Public Asset Management approved Coal India's proposal to divest up to 25 percent stake in Mahanadi Coalfields through a public issue, paving the way for the listing process. As reported by Moneycontrol, all top domestic investment banks are expected to participate in the pitches given the size of the public offering, with some foreign banks potentially part of the process. The proposed listing follows the successful public listing of another Coal India subsidiary, Central Mine Planning and Design Institute Ltd (CMPDIL), earlier this year, which raised ₹1,842 crore.
Mahanadi Coalfields delivered its highest-ever coal production of 225.17 million tonnes (MT) in FY25, marginally exceeding its annual target of 225 MT and surpassing the previous record of 206.1 MT in FY24. According to Moneycontrol reports, the company reported gross coal sales of ₹36,606 crore in FY25, marginally down from revenue of ₹37,200 crore in FY24, while profit after tax stood at ₹10,823 crore, down from ₹11,845 crore in the previous year. The company strengthened its balance sheet with net worth increasing to ₹18,279 crore from ₹16,106 crore, and distributed a dividend of ₹8,600 crore.
Mahanadi Coalfields operates several opencast and underground mines in Odisha and accounts for a significant share of Coal India's production, supplying coal to power utilities, steel makers, cement manufacturers and other industrial consumers. As reported by Moneycontrol, the proposed listing comes as the Centre continues to pursue its broader disinvestment agenda while unlocking value from profitable public sector enterprises. Coal India, the world's largest coal producer, remains central to India's energy security, supplying the bulk of the country's domestic coal requirement, with Mahanadi Coalfields emerging as one of its key growth engines.
