Economy
India's Regulator Clears Coal India Unit Mahanadi Coalfields for IPO
India's markets regulator has approved the initial public offering of Mahanadi Coalfields, a Coal India unit that produces more than a fifth of the country's coal, in what is expected to be one of India's biggest listings this year.
Photo: Forextime.com / Wikimedia Commons (CC BY 2.0). Photo shows a stock market concept, not a coal mine in Odisha.
India's capital markets regulator has approved the initial public offering (IPO) of Mahanadi Coalfields, the state-run miner Coal India's subsidiary, in what is expected to be one of India's biggest offerings this year.
Draft papers filed in September showed Coal India, the world's largest coal producer, selling a 10% stake in Mahanadi Coalfields through the IPO, offering up to 661.8 million shares of the unit.
Mahanadi Coalfields operates primarily in the eastern state of Odisha and accounted for 21% of India's overall domestic coal production and 28.4% of Coal India's total coal production in fiscal year 2026. Coal India itself contributed about 74% of India's total coal production in the same fiscal year.
The approval follows Coal India's statement in March that it could sell up to 25% stakes in Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes. Bloomberg reported on November 2, citing sources, that Coal India was preparing to launch the Mahanadi Coalfields IPO as early as this month, in an offering that could raise as much as $1 billion and value the unit at as much as $10 billion. That valuation and timing have not been confirmed by the company or the regulator, and are reported here as Bloomberg's report, not as fact.
The listing would join a string of high-profile offerings in India this year, including those by Jio Platforms and the National Stock Exchange of India, underscoring strong investor appetite for large, marquee listings, Reuters reported.
Source: Reuters
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