State-owned Mahanadi Coalfields Ltd (MCL), certainly one of Coal India Ltd’s largest and most worthwhile subsidiaries, has filed papers for an preliminary public providing (IPO), paving the best way for its itemizing on Indian inventory exchanges. The proposed IPO will comprise a suggestion on the market (OFS) of as much as 66.18 crore fairness shares by Coal India, which is the promoter of MCL. The corporate is not going to obtain any proceeds from the problem.
In response to the draft supply paperwork, all proceeds from the IPO will accrue to the promoting shareholder, Coal India, after deduction of offer-related bills and relevant taxes.
SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Providers have been appointed as book-running lead managers, whereas KFin Applied sciences will act because the registrar to the supply.
The proposed itemizing follows the federal government’s broader disinvestment programme. In Could, the Division of Funding and Public Asset Administration permitted Coal India’s proposal to divest as much as 25% of its stake in Mahanadi Coalfields by way of a public problem.
Coal India had earlier indicated that it will initially work in direction of diluting 10% of its fairness stake in MCL.
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The proposed IPO will present Coal India with a chance to unlock worth from certainly one of its most worthwhile subsidiaries whereas giving buyers direct entry to MCL’s coal mining operations.
Mahanadi Coalfields operates a number of opencast and underground mines throughout Odisha, with a significant presence within the Talcher and IB Valley coalfields. The corporate provides coal to energy utilities, metal producers, cement firms and different industrial shoppers.
MCL recorded its highest-ever coal manufacturing of 225.17 million tonnes (MT) in FY25, marginally exceeding its annual goal of 225 MT and rising from 206.1 MT in FY24. Coal dispatches additionally reached a report 210.45 MT throughout FY25.
The corporate reported gross coal gross sales of Rs 36,606 crore in fiscal 12 months 2025, in contrast with Rs 37,200 crore in fiscal 12 months 2024. Revenue after tax stood at Rs 10,823 crore, in opposition to Rs 11,845 crore a 12 months earlier.
MCL’s internet price elevated to Rs 18,279 crore in FY25 from Rs 16,106 crore in FY24. The corporate additionally distributed a dividend of Rs 8,600 crore in the course of the 12 months, highlighting its sturdy cash-generating profile.
MCL’s IPO comes after the profitable itemizing of one other Coal India subsidiary, Central Mine Planning and Design Institute Ltd (CMPDIL), earlier this 12 months. CMPDIL’s public supply raised Rs 1,842 crore. The Centre’s transfer to checklist subsidiaries of Coal India is a part of its broader technique to monetise belongings and unlock worth from worthwhile public sector enterprises.
Coal India stays central to India’s power safety because the nation’s largest coal producer, whereas MCL has emerged as certainly one of its key development engines as a result of its sizeable reserves, excessive manufacturing volumes and strategic presence in Odisha’s coal-producing areas.
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