Coal India is preparing to launch an initial public offering of its subsidiary Mahanadi Coalfields (MCL), with the share sale potentially raising up to $1 bn. The offering may value MCL at as much as $10 bn, according to Bloomberg information cited in the report.

Coal India has begun investor meetings, and the IPO could be launched in the second half of November or in early December. The size, valuation and timing remain under discussion and may change before the offering is finalised. Coal India and MCL did not respond to requests for comment cited in the report.

The proposed IPO will be entirely an offer for sale by Coal India, with no fresh issue of shares. Coal India currently owns 100 per cent of MCL 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. MCL could rank among the largest IPOs in India during the remaining months of 2026.

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. MCL was India's largest coal producer by output in FY26, producing 218.31 mn tonnes and accounting for about 22.4 per cent of the country's total non-coking coal production. As of June 30, it operated 17 mines, including 14 open-cast and three underground mines.