State-owned Coal India is preparing to launch the initial public offering (IPO) of its subsidiary Mahanadi Coalfields, with the share sale potentially raising as much as $1 bn. The offering could value the coal producer at up to $10 bn, according to information cited in a Bloomberg report.

Coal India has started investor meetings and may launch the issue in the second half of November or early December, although the timing, valuation and size remain under discussion. Coal India and Mahanadi Coalfields did not respond to requests for comment referenced in the report.

The IPO will comprise an offer for sale by Coal India, with no fresh issue of shares. Coal India currently owns 100 per cent of Mahanadi Coalfields and plans to sell up to 10 per cent of its holding, according to the subsidiary’s draft prospectus filed with the Securities and Exchange Board of India (Sebi).

SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services have been appointed as the book-running lead managers for the offering. The proposed transaction would be among the largest Indian IPOs in the remaining months of 2026 if it proceeds at the indicated valuation and size.

Indian companies have raised about $18.48 bn through IPOs so far in 2026, approaching the record $22.36 bn raised in 2025. Coal India’s South Eastern Coalfields has separately filed for an IPO, adding to the state-owned company’s plans to monetise subsidiaries through the capital markets.

Mahanadi Coalfields was India’s largest coal producer by output in FY26, producing 218.31 mn t and accounting for about 22.4 per cent of the country’s total non-coking coal production. As of June 30, the company operated 17 mines, including 14 open-cast mines and three underground mines.