Coal India Ltd submitted filing documents on 02‑09‑2026 to the market regulator seeking approval for an initial public offering of a 10% stake in its subsidiary Mahanadi Coalfields Ltd. The IPO will comprise up to 661.8 million existing shares; no new shares will be created and Mahanadi Coalfields will not receive any proceeds from the sale, meaning all proceeds will flow to Coal India.
Mahanadi Coalfields, which operates primarily in Odisha, accounted for 21% of India’s total domestic coal production and contributed 28.4% of Coal India’s overall coal output in fiscal year 2026. In the same fiscal year, Coal India itself produced roughly 74% of the nation’s total coal.
Financially, Mahanadi Coalfields reported a net profit of INR 106.78 billion (approximately USD 1.12 billion) for the year ended 31 March 2026, representing a 1.3% decline from the prior year. Revenue fell 2.6% to INR 305.5 billion.
Earlier in March, Coal India indicated it could divest up to 25% stakes in both Mahanadi Coalfields and South Eastern Coalfields through IPOs or alternative mechanisms. To date, the group has already listed two other subsidiaries in 2026: Bharat Coking Coal Ltd (BARC), which debuted in January and has since declined about 25% from its issue price, and Central Mine Planning & Design Institute Ltd (CENM), listed in March and up 39% since its debut.
The IPO filing arrives as India’s primary equity market shows early signs of recovery after a sluggish start to the year, which was impacted by a sell‑off triggered by the U.S.–Israeli conflict involving Iran.