Coal India’s big disinvestment push is about to hit the market. Mahanadi Coalfields, the state-run miner’s largest coal-producing arm, is likely to launch its initial public offering next week, with the issue opening on November 19 and closing on November 23, The Economic Times reported on Saturday, citing people familiar with the development.
The issue size is expected to be around Rs 10,000 crore, which would make it one of the largest public offers of the year. The price band is likely to be announced on Monday, November 16, the report said.
Neither Coal India nor Mahanadi Coalfields has officially confirmed the dates yet, so investors should treat the schedule as reported rather than final until the red herring prospectus is filed. But the timing fits the pattern: the market regulator cleared the draft papers just last week, and the company has been holding investor meetings ahead of a launch.
What the IPO looks like
The offer is entirely an offer for sale. Coal India plans to sell up to 66.18 crore existing shares of Mahanadi Coalfields, about 10 percent of the subsidiary’s equity. No new shares will be issued, which means Mahanadi Coalfields itself will receive none of the money raised. Every rupee will go to the parent company.
The shares are proposed to be listed on both the NSE and the BSE. SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets and Securities and IIFL Capital Services are managing the issue, with KFin Technologies as the registrar.
At an expected size of around Rs 10,000 crore, the issue would be in the same league as the biggest PSU offerings of recent years. Bloomberg had earlier reported that the sale could raise up to $1 billion and value Mahanadi Coalfields at as much as $10 billion, though the final valuation will depend on the price band that is announced on Monday.
SEBI cleared the papers on November 4
The road to this launch began on August 31, when Mahanadi Coalfields filed its draft red herring prospectus with the Securities and Exchange Board of India. SEBI issued its final observations on the draft documents on November 4, clearing the way for the company to file the final prospectus and open the issue.
What Mahanadi Coalfields actually does
Mahanadi Coalfields is Coal India’s biggest coal-producing subsidiary and one of the largest coal miners in the country. In financial year 2025-26, it produced 218.31 million tonnes of coal, accounting for about 22.4 percent of India’s total non-coking coal production, according to a CRISIL report cited in the draft prospectus.
As of June 30, 2026, the company operated 17 mines, 14 opencast and three underground, mostly in Odisha. Its coal feeds power plants, steel makers and other industries across the country, which is why the listing is being watched well beyond the stock market.
For Coal India, the sale is part of a wider plan to unlock value from its subsidiaries by listing them separately. For the government, which owns the parent, it is also a disinvestment receipt at a time when large PSU sales are back in focus.
What investors should watch
- The price band on Monday: The band, expected on November 16, will decide the final issue size and the valuation. Until then, the Rs 10,000 crore figure is an estimate based on reports, not a confirmed number.
- The shareholder quota: Coal India shareholders usually get a reserved quota in subsidiary IPOs. The record date is normally the date the final prospectus is filed, which has not been announced yet. Shareholders who want the quota should watch for that filing.
- The grey market: With no price band out yet, there is no meaningful grey market premium to read into. Any premium quoted before Monday should be treated with caution.
- The anchor book: Institutional interest in the anchor allocation, which typically opens a day before the public issue, will be an early signal of demand.
- The official filing: The red herring prospectus, when filed, will carry the final dates, lot size and price band. That document, not media reports, is the final word.
FAQs
When does the Mahanadi Coalfields IPO open?
The IPO is likely to open on November 19 and close on November 23, according to a report in The Economic Times. The dates have not been officially confirmed by the company yet.
What is the expected issue size?
The issue size is expected to be around Rs 10,000 crore. The final size will depend on the price band, which is likely to be announced on Monday, November 16.
How many shares is Coal India selling?
Coal India plans to sell up to 66.18 crore shares, about 10 percent of Mahanadi Coalfields, through a complete offer for sale. The company will issue no new shares.
Will Mahanadi Coalfields get any money from the IPO?
No. Since the issue is entirely an offer for sale by the promoter, all proceeds will go to Coal India. Mahanadi Coalfields will receive nothing from the offering.
Where will the shares list?
The shares are proposed to be listed on the NSE and the BSE.
The price band announcement on Monday will be the next milestone. If it lands as expected, bidding opens on Thursday, November 19, and one of the year’s biggest IPOs will be under way.
