Mahanadi Coalfields IPO: RHP Filed, 10% Stake Sale

The Mahanadi Coalfields IPO moved closer on 13 November, when Coal India told the exchanges it had filed the red herring prospectus (RHP) for its Odisha subsidiary. The issue is an offer for sale of up to 66.18 crore shares, about 10% of the unit, IPO Guru reported on 14 November. The price band and the opening date have not been announced.

What happened

The RHP is dated 13 November and went to SEBI, the Registrar of Companies, BSE and NSE, according to IPO Guru. SEBI had cleared the draft papers on 4 November. The whole issue is an offer for sale by Coal India, so Mahanadi Coalfields raises no fresh capital, Lapaas Voice reported on 13 November.

Moneycontrol, citing sources, said the issue could open next week and be worth about Rs 9,500 crore (about $1 billion), IPO Guru reported. That figure is unconfirmed. Other reports put the size near Rs 10,000 crore, and the company has not confirmed the schedule, Kotak Neo said.

Key numbers

66.18 crore shares: the size of the offer for sale, up to 10% of the unit, with a face value of Rs 2 a share, Lapaas Voice reported.
About Rs 9,500 crore ($1 billion): the possible issue size, per Moneycontrol as cited by IPO Guru.
About $10 billion: the expected valuation, according to Kotak Neo.
Rs 8,033.7 crore revenue and Rs 2,398.7 crore net profit in the June 2026 quarter, Business Today reported from the draft papers.
218.31 million tonnes: coal output in FY2026, about 22.40% of India’s non-coking coal production per a CRISIL report cited by Business Today.

Who is Mahanadi Coalfields, the Coal India subsidiary behind the IPO

Mahanadi Coalfields (MCL) was carved out of South Eastern Coalfields on 3 April 1992 and is wholly owned by Coal India, Business Today reported. It works the Talcher and Ib Valley coalfields in Odisha and ran 17 mines on 30 June 2026, 14 opencast and three underground. It has Miniratna Category I status, granted on 3 December 2019.

The profit figure matters for buyers. Business Today said net profit in the June 2026 quarter was Rs 2,398.7 crore against Rs 2,448.3 crore a year earlier, while revenue rose from Rs 7,548.3 crore to Rs 8,033.7 crore. The issue also joins a busy pipeline in the energy and climate industry, where our earlier story on the Sembcorp Green Infra IPO covered another SEBI-cleared issue.

What it means for the IPO market

Kotak Neo said Indian companies had raised about $18.48 billion through IPOs by early November 2026, against $22.36 billion in all of 2025. It put the October raise by Jio Platforms at about Rs 30,188 crore and the September NSE raise at Rs 22,562 crore. A Rs 9,500 crore issue would be smaller than both, but it comes from a state-controlled miner rather than a founder-led group. For a founder-backed comparison, see our report on the Carlsberg India IPO, which sits in the wider financial services market story.

What happens next

The next step is the price band announcement, which would set the opening date for the Mahanadi Coalfields IPO. Moneycontrol said it could open next week, while Kotak Neo said the second half of November or early December. Business Today reported the book is split with up to 50% for qualified institutional buyers, 15% for non-institutional bidders and 35% for retail investors. The shares are proposed for listing on NSE and BSE, with SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets and Securities, and IIFL Capital Services as lead managers.