Mahanadi Coalfields files RHP for proposed IPO worth nearly Rs 9,500 crore
Mahanadi Coalfields Ltd has filed its Red Herring Prospectus for an initial public offering with regulatory bodies. This IPO features an offer for sale of roughly 66.18 crore equity shares from Coal India, amounting to a 10 percent stake in the subsidiary MCL. The intended capital raise is around Rs 9,500 crore, with the final execution reliant on regulatory approval and market conditions.
Mahanadi Coalfields, a wholly owned subsidiary of Coal India, is set to launch its IPO within the coming week, with the prospect of raising up to ₹10,000 crore, according to sources. The IPO is slated to commence on November 19 and conclude on November 23. The price band for the shares is expected to be revealed on November 16. Sebi granted its authorization for the share sale on November 4.
MCL's draft red herring prospectus (DRHP) reveals that Coal India, the parent company, plans to sell up to 66.18 crore equity shares through an offer for sale (OFS).
The proposed IPO will not include any new issue component, meaning all proceeds will benefit Coal India. SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities, and IIFL Capital Services are set to serve as the lead managers for the issue. This listing is part of Coal India's strategy to generate value from its subsidiaries through public offerings.
The company has been pursuing this approach throughout the year, with Bharat Coking Coal (BCCL) listing in January, Central Mine Planning & Design Institute (CMPDI) listing in March, and South Eastern Coalfields (SECL) filing its IPO papers in the same month, awaiting Sebi's approval.
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- Mahanadi Coalfields IPO may open next week, issue size pegged at Rs 10,000 crore economictimes.indiatimes.com
