New Delhi: Coal India Limited (CIL) will offer up to 661,836,300 equity shares of Mahanadi Coalfields Limited (MCL) — about 10 percent of the subsidiary — in an Initial Public Offering (IPO), the state-owned miner told the exchanges. The Draft Red Herring Prospectus (DRHP) is dated September 1 and has been filed with the Securities and Exchange Board of India (SEBI), BSE Ltd and the National Stock Exchange of India Ltd (NSE), CIL disclosed on Wednesday.
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The shares carry a face value of Rs 2 each and are held by CIL, which is MCL's sole shareholder. The offer is structured entirely as an offer for sale, so MCL will issue no new shares and will receive none of the proceeds. CIL said the offering remains subject to applicable approvals, prevailing market conditions and other considerations.
Because nothing is being raised for the company, the transaction transfers value to the parent rather than capital to the miner. CIL's board has cleared divestment of up to 25 percent in MCL, which leaves room for further tranches beyond the 10 percent now offered. B Sairam, Chairman and Managing Director (CMD) of Coal India, said on August 31 that MCL and South Eastern Coalfields Limited (SECL) offerings would be completed within the current financial year, with the timing dependent on market conditions and government directives.
MCL produced 218.31 Million Tonnes (MT) of coal in 2025-26, down from 225.17 MT a year earlier, a decline of 3.05 percent, according to the Ministry of Coal's provisional monthly statistics for March. Offtake held closer to the previous year at 211.35 MT against 212.02 MT, a fall of 0.32 percent, indicating that despatches were sustained from stock even as mining slowed.
The subsidiary remains CIL's largest producer by a wide margin. Its parent produced 768.14 MT in the same period, itself down 1.65 percent from 781.06 MT, with offtake at 744.88 MT. On those figures MCL accounted for a little over 28 percent of the group's output. The draft prospectus puts MCL's share of Coal India's production at 28.4 percent and its share of India's total domestic coal production at 21 percent for the year.
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MCL reported a net profit of Rs 10,678 crore in 2025-26, down 1.3 percent from the preceding year, on revenue of Rs 30,550 crore, down 2.6 percent, according to the draft prospectus. The company is described in the filing as holding audited reserves of 9,840.31 MT, which it says would sustain production for around 45 years at current rates.
The MCL filing follows two subsidiary listings completed earlier this year. Bharat Coking Coal Limited (BCCL) listed in January and Central Mine Planning and Design Institute Limited (CMPDIL) in March, with the two trading in opposite directions since — BCCL down about 25 percent and CMPDIL up about 39 percent. SECL is expected to follow MCL, with the Coal Ministry having granted in-principle approval for both in December 2025.
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