India’s capital markets regulator has approved the initial public offering of Mahanadi Coalfields, a unit of state-run miner Coal India. The share sale is expected to be one of the country’s biggest offerings this year.
Stake sale details
Draft papers filed with the regulator earlier in September showed that Coal India, the world’s largest coal producer, plans to sell a 10% stake in Mahanadi Coalfields through the IPO. The draft prospectus said the parent would sell up to 661.8 million shares of the unit.
Mahanadi’s role in coal output
Mahanadi Coalfields operates mainly in eastern Odisha. In fiscal 2026, it accounted for 21% of India’s overall domestic coal production and 28.4% of Coal India’s total output. Coal India itself contributed about 74% of the country’s coal production in the same fiscal year.
Further stake sales planned
In March, Coal India said it could sell up to 25% stakes in Mahanadi Coalfields and another subsidiary, South Eastern Coalfields. The sales could take place through IPOs or other routes.
Timing and valuation
Bloomberg reported on 2 November, citing sources, that Coal India was preparing to launch the Mahanadi Coalfields IPO as early as this month. The offering could raise as much as $1 billion and value the unit at up to $10 billion, according to that report.
Strong investor appetite
India’s capital markets have seen a run of high-profile offerings this year, including those by Jio Platforms and the National Stock Exchange of India. These listings point to strong demand from investors for large, well-known companies going public.
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