Athira Sethu
Kochi, 2 September 2026
Mahanadi Coalfields Ltd (MCL), one of India’s largest coal production firms, has now moved a crucial step ahead in initiating its Initial Public Offering (IPO). The firm has filed its draft documents with SEBI, India’s securities market regulator, in order to raise capital via IPO.
This will be an Offer for Sale (OFS). According to this plan, Coal India Ltd, which acts as the promoter of Mahanadi Coalfields, will offer about 661.84 million shares to the general public. As IPO is going to be an OFS in this case, Mahanadi Coalfields will not get any benefit from the share offering as the entire amount will go to Coal India Ltd, the stake holder making the offer.
Listing the company on stock market would help in enhancing the visibility and brand image of the firm.
Mahanadi Coalfields is planning to allocate the shares through the IPO in different categories to various kinds of investors. It is allocating 50% of its shares to the category of Qualified Institutional Buyers. About 35% of the shares are being reserved for retail investors and 15% for non-institutional investors.
A number of financial firms will assist in managing the IPO process. The firms that will assist in doing so include SBI Capital Markets, BOB Capital Markets, Axis Capital, IIFL Capital Services and IDBI Capital Markets & Securities. KFin Technologies will act as the registrar for the issue.
After the completion of the IPO process, the company’s shares are likely to get listed on NSE and BSE.
The Mahanadi Coalfields Limited is an extremely significant coal producer in India. In the financial year 2025–26, it produced around 218.31 million tonnes of coal. This made it the largest domestic coal producer in India with the production rate of about 22.40% of the total non-coking coal production in India.
These coal deposits have an estimate of coal deposits amounting to 106.76 billion tonnes.
Non-coking coal is of various grades produced by MCL. This coal mainly finds application in power plants and also in industries like sponge iron and cement.
The company was founded in the year 1992. It was created through the separation from South Eastern Coalfields Ltd and is currently classified as Miniratna Category I.
In all, this IPO will be an important milestone for Mahanadi Coalfields as it gets ready to go public.
