The MCL IPO has moved forward after Coal India Limited (CIL) filed the Draft Red Herring Prospectus (DRHP) for the proposed public offering of its wholly owned subsidiary, Mahanadi Coalfields Limited (MCL). The proposed IPO will comprise an Offer for Sale (OFS) of up to 66.18 crore equity shares held by Coal India.
MCL IPO DRHP Filed With Market Regulators
Coal India disclosed the development in a regulatory filing dated September 2, 2026. The DRHP, dated September 1, 2026, was filed with the Securities and Exchange Board of India (SEBI), BSE and NSE.
The proposed offering marks a key step in the planned listing of Mahanadi Coalfields. MCL is a wholly owned subsidiary of Coal India and is among the major companies within the group’s coal mining operations.
MCL IPO to Offer 66.18 Crore Shares
Under the proposed MCL IPO, Coal India will offer up to 661,836,300 equity shares through an Offer for Sale.
Each share has a face value of ₹2. The shares are currently held by Coal India, which will sell them as part of the proposed OFS.
Since the issue is structured as an OFS, the shares being offered will come from the existing holding of the parent company rather than through the issue of new shares by MCL.
IPO Remains Subject to Approvals
Coal India said the proposed MCL IPO remains subject to applicable approvals, prevailing market conditions and other relevant considerations.
The company made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The regulatory filing was signed by B. P. Dubey, Company Secretary and Compliance Officer, Coal India Limited.
MCL IPO: Key Details
The proposed offering involves Mahanadi Coalfields Limited, with Coal India as its parent company.
Key details of the proposed MCL IPO include:
- Company: Mahanadi Coalfields Limited
- Parent company: Coal India Limited
- Issue: Proposed Initial Public Offering
- Offer type: Offer for Sale
- Shares offered: Up to 661,836,300 equity shares
- Face value: ₹2 per share
- DRHP date: September 1, 2026
- Regulatory disclosure: September 2, 2026
MCL IPO Marks Step Toward Public Listing
The filing of the DRHP takes the proposed MCL IPO into the regulatory review process. The offer will proceed subject to the required approvals and market conditions.
The proposed OFS will allow Coal India to sell part of its existing shareholding in MCL through the public offering. Further details on the issue, including pricing and other offer-related terms, will be determined through the IPO process.
Source: PSU Connect
