Coal India Limited will sell a 10 per cent stake in Mahanadi Coalfields Limited (MCL) through an initial public offering after filing a draft red herring prospectus with the Securities and Exchange Board of India, the Bombay Stock Exchange and the National Stock Exchange. The proposed issue comprises entirely an offer for sale of up to 66.18 crore equity shares, representing a 10 per cent holding, equivalent to about 661.8 mn equity shares. The shares have a face value of Rs two each.

The IPO remains subject to regulatory approvals and market conditions. MCL operates predominantly in Odisha and accounted for 21 per cent of India's total domestic coal production and 28.4 per cent of Coal India's production in FY26. As at April one, 2026, audited coal reserves stood at 9,840.31 million t, which the company said would sustain production for around 45 years.

SBI Capital Markets Limited, Axis Capital Limited, BOB Capital Markets Limited, IDBI Capital Markets & Securities Limited and IIFL Capital Service Limited have been appointed as book running lead managers to the issue. The draft papers identify the President of India, acting through the Ministry of Coal, and Coal India Limited as the promoters of MCL. The filing sets out the shareholder offer for sale and related regulatory disclosures required for the public issue.

Coal India shares were trading at Rs 419.40 per share, up 16.90 points or 4.20 per cent at around 11:25 AM against the previous close of Rs 402.50 per share. Based on Bombay Stock Exchange data, the company had a market capitalisation of Rs 2,583.72 bn as of September two. The prospectus filing follows a series of government equity disinvestments and will proceed subject to market conditions and statutory clearances.