Mahanadi Coalfields Ltd (MCL), a wholly owned unit of Coal India Ltd, announced on Saturday that it has lodged the Red Herring Prospectus (RHP) for a planned initial public offering.
The document is dated November 13. It has been submitted to the Registrar of Companies (RoC), the Securities and Exchange Board of India (SEBI), BSE and NSE, according to a regulatory disclosure from Coal India.
Under the plan, Coal India will sell up to 66.18 crore equity shares of the subsidiary through an offer for sale (OFS). These shares make up 10 per cent of its holding in MCL. The issue is expected to bring in around Rs 9,500 crore.
The offering remains conditional. It depends on receiving the required approvals, prevailing market conditions and other considerations, the filing said.
The listing is part of Coal India’s wider effort to get more value from its subsidiaries by selling stakes in them and bringing them to the stock exchanges.