The government has approved the listing of Mahanadi Coalfields Limited (MCL), a major subsidiary of Coal India Limited (CIL), through an Initial Public Offering (IPO). The Alternative Mechanism, processed by the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal, cleared the proposal following approvals from the boards of both Coal India and MCL.
Coal India plans to divest up to 25 percent of its shareholding in MCL through a combination of an Offer for Sale (OFS) of existing shares and a fresh equity issue by MCL itself. Further capital can also be raised through follow-on public offers (FPOs) and Qualified Institutional Placements (QIPs) in subsequent tranches, subject to a combined cap of 25 percent dilution.
MCL is one of Coal India's largest and most profitable subsidiaries, contributing significantly to CIL's overall coal production and supply operations. The filing was submitted to both BSE and NSE on May 15, 2026.
The proposed listing remains subject to market conditions and completion of all statutory and regulatory formalities. The MCL IPO is seen as a key part of the government's disinvestment programme, following CMPDIL's listing earlier in 2026. Investors in Coal India stock will be watching closely for further updates on the timeline and valuation.
