State-run Coal India announced on Friday that the Department of Investment and Public Asset Management (DIPAM) has approved the proposal to list its coal-producing subsidiary, Mahanadi Coalfields Limited (MCL). This will involve a combination of fresh equity issuance and disinvestment by Coal India through an offer for sale (OFS).
In a stock exchange filing, Coal India stated, “DIPAM/MoC has processed a proposal seeking approval of the Alternative Mechanism (AM) for the listing of Mahanadi Coalfields (MCL), based on the approvals accorded by the board of Coal India (CIL) and the board of MCL.”
Coal India plans to disinvest its stake in MCL through an OFS of existing shares as part of MCL’s Initial Public Offering (IPO) and could follow up with multiple tranches. Additionally, MCL may raise funds through the issuance of new equity shares, which can occur during the IPO or through future Follow-on Public Offerings (FPOs), Qualified Institutional Placements (QIPs), or other methods approved by the Securities and Exchange Board of India (SEBI).
The disinvestment and capital raising initiatives may be executed simultaneously or separately, and the overall disinvestment/capital raising will limit Coal India’s shareholding in MCL to a maximum reduction of 25%.
Furthermore, the proposed listing of MCL is contingent on current market conditions and adherence to all necessary statutory and regulatory requirements.
In November of the previous year, Coal India’s board granted in-principle approval for the listing of Mahanadi Coalfields and South Eastern Coalfields, following directives from the Coal Ministry to undertake concrete steps for the listing of these two coal-producing subsidiaries. Among Coal India’s seven subsidiaries, Mahanadi Coalfields and South Eastern Coalfields are the two largest in terms of coal output.
The announcement reflects ongoing efforts to enhance the operational and financial independence of Coal India’s subsidiaries, contributing to the broader goals of the Indian coal sector.
Published on May 15, 2026.
