India’s capital markets regulator has approved the initial public offering (IPO) of Mahanadi Coalfields, a subsidiary of state-run miner Coal India. The proposed listing is expected to be among the country’s largest offerings this year, amid strong investor interest in sizeable public issues.

Coal India plans to sell up to 661.8 mn shares, representing a 10 per cent stake in Mahanadi Coalfields, according to draft documents filed with the Securities and Exchange Board of India in September. The transaction will be an offer for sale, with proceeds going to the parent rather than being raised directly by the subsidiary.

Mahanadi Coalfields operates primarily in Odisha and accounted for 21 per cent of India’s domestic coal production in fiscal 2026. It contributed 28.4 per cent of Coal India’s total coal production during the year, highlighting the subsidiary’s importance within the state-run producer’s portfolio.

Coal India accounted for about 74 per cent of India’s overall coal production in fiscal 2026. In March, the company said it could sell stakes of up to 25 per cent in Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes, although the approved offering currently covers a 10 per cent stake in Mahanadi Coalfields.

The offering could raise as much as $1 bn and value Mahanadi Coalfields at up to $10 bn, according to a report published on November 2. The issue may be launched as early as this month, although the company has not announced a timetable in the information provided. Recent high-profile proposed offerings, including those involving Jio Platforms and the National Stock Exchange of India, have underscored continued investor appetite for large listings.