Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, has invited investment banks to pitch to manage a proposed initial public offering worth about Rs 100 billion (Rs 100 bn).

Sources told Moneycontrol that banker presentations are scheduled in Kolkata in August and that the final offer size and structure will be decided closer to launch.

The process is expected to be an offer for sale in which Coal India will dilute part of its holding. The Department of Investment and Public Asset Management authorised Coal India to divest up to 25 per cent stake in Mahanadi Coalfields through a public issue, and Coal India has begun preparations to dilute 10 per cent of its equity stake initially, a company statement said.

Coal India is appointing intermediaries such as book running lead managers and merchant bankers to facilitate the offer for sale process, and market participation is expected from top domestic banks and potentially some foreign banks.

Mahanadi Coalfields operates opencast and underground mines in Odisha and contributes a significant share of Coal India's production, supplying power utilities, steel makers and cement manufacturers. The company recorded its highest coal production of 225.17 million tonnes (225.17 mn t) in FY25 and coal dispatches reached a record 210.45 million tonnes.

Gross coal sales were Rs 366.06 billion (Rs 366.06 bn) in FY25 while profit after tax stood at Rs 108.23 billion (Rs 108.23 bn). Net worth rose to Rs 182.79 billion (Rs 182.79 bn) and the company distributed a dividend of Rs 86 billion (Rs 86 bn), reflecting strong cash generation.

The proposed listing aligns with the central government’s disinvestment agenda and follows the successful listing of Central Mine Planning and Design Institute Ltd, which raised Rs 18.42 billion (Rs 18.42 bn) earlier in the year. The listing of Mahanadi Coalfields would be material for India’s energy sector and for public sector value unlocking.