JHARSUGUDA — Mahanadi Coalfields Limited (MCL), a powerhouse subsidiary of state-run Coal India Limited (CIL), has officially initiated its public market debut by filing its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI.
The landmark Initial Public Offering (IPO) will consist entirely of an Offer for Sale (OFS) representing a 10% stake by Coal India. The public issue involves up to 66.18 crore equity shares with a face value of ₹2 each. As an OFS, 100% of the capital raised will head directly to the parent company, Coal India.
The allocation framework for the highly anticipated public issue is structured as
Qualified Institutional Buyers (QIBs): Up to 50% of the total issue size.
Retail Investors: At least 35% reserved, ensuring strong participation from small investors.
Non-Institutional Investors (NIIs): At least 15% allocated for high-net-worth individuals.
Shareholder Quota Advantage: Retail shareholders who own Coal India shares prior to the finalization of the Red Herring Prospectus (RHP) may be eligible for a reserved shareholder category.
SBI Capital Markets is acting as the lead manager for the IPO, while Kfin Technologies has been appointed as the registrar.
MCL stands as a crown jewel for Coal India, contributing over 21% of India’s entire domestic coal production. The company enters the primary market backed by exceptionally strong financial fundamentals reported for FY26:Total Revenue: ₹33,899.28 croresNet Profit: ₹10,698.12 croresThe market reacted with strong optimism to the DRHP filing. In immediate response, shares of the parent company, Coal India Limited, surged up to 5% on the BSE,reflecting positive investor sentiment surrounding the massive value-unlocking move.
