Coal India arm Mahanadi Coalfields IPO to hit Dalal Street on November 19

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Mahanadi Coalfields, a subsidiary of the country's largest coal mining company, Coal India, will open its initial public offering (IPO) for public subscription on November 19. This will be the second mainboard IPO to open next week, alongside that of Crystal Crop Protection.

The IPO comprises an offer for sale (OFS) of 66.18 crore equity shares by promoter Coal India, representing 10 percent of Mahanadi Coalfields' total paid-up equity capital.

As a result, the entire proceeds from the offer, excluding issue expenses, will go to the selling shareholder, Coal India, and the company will not receive any funds from the IPO.

Moneycontrol was the first to report that Mahanadi Coalfields was likely to launch its maiden public offering next week, with the issue size expected to be around $1 billion, or approximately Rs 9,500 crore.

IPO Schedule

The one-day anchor book will open on November 18 for institutional investors, while the IPO will close for public subscription on November 23.

The share allotment is likely to be finalised on November 25, and Mahanadi Coalfields shares are scheduled to list on the stock exchanges on November 27.

Mahanadi Coalfields will be the third Coal India subsidiary to get listed on the stock exchanges, after Bharat Coking Coal and Central Mine Planning & Design Institute.

The country's largest coal-producing company has reserved 3.3 crore equity shares, or 5 percent of the offer size, for its employees and 6.61 crore shares, or 10 percent of the total offer, for Coal India shareholders.

Of the net offer, excluding the portions reserved for employees and shareholders, 50 percent has been earmarked for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs), and the remaining 35 percent for retail investors.

Business

Mahanadi Coalfields was incorporated in April 1992 after being carved out of South Eastern Coalfields to meet the country's growing energy requirements by increasing coal production from two coalfields — Talcher and Ib Valley — in Odisha. These coalfields have estimated coal resources of approximately 106.76 billion tonnes.

It is the largest coal producer among Coal India's subsidiaries, accounting for 28.4 percent of Coal India's total coal production in FY26 and 21 percent of domestic coal production. Its resources predominantly comprise thermal-grade non-coking coal.

Financial Performance

Mahanadi Coalfields reported a 6.7 percent year-on-year increase in profit to Rs 4,880.7 crore for the six months ended September 2026. Revenue rose 9.3 percent to Rs 16,093 crore during the same period compared with the corresponding period of the previous fiscal year.

For the financial year ended March 2026, however, profit declined 1.2 percent to Rs 10,698.1 crore, while revenue fell 2.6 percent to Rs 30,549.6 crore compared with the previous year.

SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities, and IIFL Capital Services have been appointed as merchant bankers to the Mahanadi Coalfields IPO.