Coal India arm Mahanadi Coalfields filed DRHP to launch its IPO; check all key details

Odisha-based Mahanadi Coalfields has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed issue is entirely an offer for sale (OFS) of up to 66,18,36,300 shares by promoter Coal India Ltd. It was granted Miniratna Category I status on December 3, 2019.

The issue is being made through the book-building process, with up to 50 per cent of the net offer reserved for qualified institutional buyers, and up to 15 per cent and 35 per cent for non-institutional bidders and retail individual bidders, respectively.

Incorporated in 1992, Mahanadi Coalfields was the largest coal producer in India in FY2026, with output of 218.31 million tonnes, accounting for about 22.40 per cent of India’s total non-coking coal production, according to a CRISIL report.  The Talcher and Ib Valley coalfields had a total estimated coal resource of about 106.76 billion tonnes, according to this report.

The company’s audited coal reserves stood at 9,840.31 million tonnes, according to the DMT report, enough to sustain production for around 45 years at the FY2026 production level. At a similar production rate, further resource-to-reserve conversion could extend its operational life by about 100 years.

The company was carved out of South Eastern Coalfields Limited on April 3, 1992, to meet the country’s growing energy needs by increasing coal production from the Talcher and Ib Valley coalfields in Odisha. It had deployed about 70 surface miners, including owned and contracted units, as of June 30, 2026.

It held about 33,508.79 hectares of land, including acquired and leased land, spread across Talcher, Ib Valley, Sambalpur, Bhubaneswar and Patnagarh in Odisha. It also held mining and surface rights over 30,192.14 hectares in Talcher and Ib Valley under the Coal Bearing Areas Act, 1957, while other land holdings were mainly used for colonies and related infrastructure.

Its operational portfolio includes opencast and underground mining projects, evacuation infrastructure such as coal handling plants and silos or rapid loading systems, and one coal washery. As of June 30, 2026, it operated 17 mines, comprising 14 opencast and three underground mines. It has taken measures to reduce its ecological footprint.

Revenue from operations stood at Rs 8,033.7 crore in the June 2026 quarter, up from Rs 7,548.3 crore a year earlier, while net profit was Rs 2,398.7 crore against Rs 2,448.3 crore. SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities, and IIFL Capital Service are the book-running lead managers, while KFin Technologies is the registrar of the issue.