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Govt clears Mahanadi Coalfields IPO as Coal India plans to cut stake by up to 25 percent
Economy
Published on 15 May 2026
Coal India may sell shares via OFS then more tranches
India’s government has approved the listing and disinvestment of Mahanadi Coalfields Limited (MCL), opening the door for an IPO. DIPAM and the Ministry of Coal cleared the proposal after Coal India and MCL boards endorsed it and the Alternative Mechanism (AM) approved it. Coal India can dilute its stake in MCL by up to 25% through an offer for sale tied to the IPO and additional tranches, while MCL may also raise fresh capital via IPO, follow-on offers, QIPs, or other SEBI-approved routes.
- AM approved Mahanadi Coalfields Limited listing and disinvestment
- Coal India can dilute its MCL stake by up to 25%
- Disinvestment can happen through OFS in the IPO plus later tranches
- MCL may raise equity via IPO, FPOs, QIPs, and other SEBI-approved routes
- Total dilution is capped even if activities run simultaneously or separately
- MCL IPO remains subject to market conditions and regulatory requirements
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times