Mahanadi Coalfields Limited (MCL), a major subsidiary of Coal India, has received regulatory approval from SEBI for its initial public offering. This move is part of Coal India's strategy to divest a 10% stake in its profitable arm.
₹8,000-₹10,000 crore
Expected IPO Size
⏳ Time Machine
How today’s news fits into the bigger picture
2015
Coal India's Historic IPO
Coal India Limited, MCL's parent company, launched its own IPO, which was then the largest in India's history, raising ₹15,200 crore and marking a significant government divestment.
Early 2020s
Government's Divestment Push
The Indian government intensified its efforts to divest stakes in various public sector undertakings (PSUs) as part of a broader economic strategy to raise funds and improve efficiency, often identifying profitable subsidiaries like MCL for potential listings.
September 2026
MCL Files DRHP
Mahanadi Coalfields Limited filed its Draft Red Herring Prospectus (DRHP) with SEBI, formally initiating the process for its initial public offering and providing details about the proposed 10% stake sale by Coal India.
Today
SEBI officially approved the IPO for Mahanadi Coalfields Limited.
What happens next?
MCL and Coal India will finalize the IPO launch date, pricing, and begin roadshows in the coming weeks.
The Securities and Exchange Board of India (SEBI) has given its green light for the initial public offering (IPO) of Mahanadi Coalfields Limited (MCL), a key subsidiary of the state-owned Coal India. This regulatory clearance paves the way for Coal India, the world's largest coal producer, to proceed with its plan to offload a 10% stake in MCL. The IPO is anticipated to be a significant event in the primary market, potentially raising ₹8,000-₹10,000 crore. This strategic divestment aligns with the government's broader agenda to unlock value from public sector undertakings and generate revenue.
💭 If you're wondering…
Regulatory approval from SEBI means that the market regulator has reviewed the company's detailed prospectus and is satisfied that it meets all necessary disclosure and compliance requirements for a public listing, allowing the company to proceed with the offering.
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