by Suman Gupta
2nd September 2026, Mumbai: Odisha-based Mahanadi Coalfields Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).
The IPO, with a face value of Rs 2, is an offer-for-sale up to 661,836,300 shares by promoter – Coal India Limited.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.
Incorporated in 1992, the company is the largest coal producer in India in terms of production in Fiscal 2026, with a coal production of 218.31 million tonnes (“MT”), accounting for approximately 22.40% of India’s total non-coking coal production (source: CRISIL Report).
As of April 1, 2026, the Talcher and Ib Valley coalfields held a total estimated coal resource of approximately 106.76 billion tonnes (source – CRISIL Report). As on April 1, 2026, the company’s audited coal reserves stood at 9,840.31 MT (source – DMT Report), which would sustain the company’s production operation for around 45 years considering the present production level (the annual coal production of 218.31 million tonnes (MT) in FY 2026).
Assuming a production rate similar to the current level is maintained, the additional resource-to-reserve conversion has the potential to extend its operational life by approximately 100 years (source: CRISIL Report).
Its primary product is non-coking coal. The company produces various grades of non-coking coal, including washed / beneficiated coal.
The company caters to the power utilities sector, including state power utilities, private power utilities, captive power plants and independent power producers as well as non-power industries, including the cement sector and the sponge iron sector.
Its vast resource base and significant reserves, coupled with its strategic location in the Talcher and Ib Valley coalfields, Odisha, provides the company with a steady and reliable supply of on-coking coal.
The company is a wholly owned subsidiary of Coal India Limited and was conferred with Miniratna Category I status on December 3, 2019. The company was incorporated on April 3, 1992, carving out of South Eastern Coalfields Limited in order to fulfill the growing energy requirement of the country by enhancing coal production from two coalfields, namely the Talcher and Ib Valley coalfields, Odisha.
The company is the largest coal producer among Coal India Limited’s subsidiaries, accounting for 28.3% of Coal India Limited’s total coal production in Fiscal 2026 (source: CRISIL Report).
The company has expanded its operations significantly over the years, with its coal production increasing 5.92% from 206.10 million tonnes in Fiscal 2024 to 218.31 million tonnes in Fiscal 2026.
As of June 30, 2026, the company deployed approximately 70 surface miners in its operations, comprising both owned and contracted surface miners (source – CRISIL Report). As at March 31, 2026, the company owned 22 surface miners out of Coal India Limited’s total fleet of 47 surface miners, the largest surface miner fleet among Coal India Limited’s subsidiaries (source – CRISIL Report).
The company holds approximately 33,508.79 hectares (335.09 square kilometres) of land inclusive of acquired and leased land, of which 167.37 square kilometres is located in the Talcher coalfield and 165.96 square kilometres is located in the Ib Valley coalfield, and the remaining 1.76 square kilometres is at Sambalpur, Bhubaneswar and Patnagarh in Odisha.
As of June 30, 2026, the company held mining rights along with surface rights over 30,192.14 hectares of land across the Talcher and Ib Valley coalfields, Odisha, pursuant to the Coal Bearing Areas (Acquisition and Development) Act, 1957.
The other land holdings, whether vested or leased-in, are predominantly utilized for colonies and related infrastructure.
The company’s operational portfolio includes (i) opencast and underground mining projects, (ii) evacuation infrastructure including coal handling plants and silos/rapid loading systems, and (iii) one coal washery.
As of June 30, 2026, the company operates a network of 17 operational mines, comprising 14 opencast mines and 3 underground mines.
For the three months periods ended June 30, 2026 and 2025 and for Fiscals 2026, 2025 and 2024, 99.81%, 99.82%, 99.85%, 99.79% and 99.78%, of the company’s total coal production, respectively, was from opencast mines.
The company’s network of mines is supported by a well-developed infrastructure, including railways, roads and ports, and evacuation facilities, such as coal handling plants, rapid loading systems and silos. It has rail connectivity through three railway zones, South Eastern Railway, South East Central Railway and East Coast Railway, along with dedicated coal corridors, which enable efficient evacuation of coal across India.
The company’s coal is transported through five ports located at Paradip, Dhamra and Gopalpur in Odisha and Vizag and Gangavaram in Andhra Pradesh, each on the Bay of Bengal, for efficient evacuation of coal to other regions of the country. Paradip Port has remained its primary gateway for coal evacuation by sea, and its evacuation network has also become increasingly rail-led as a result of our ongoing investment in first-mile connectivity (“FMC”) infrastructure, with railways accounting for 96.86% of our FMC-based dispatch and 65.28% of its total coal dispatch in Fiscal 2026, as compared to 91.27% and 58.70%, respectively, in Fiscal 2024.
In line with its commitment to sustainability and environmental stewardship, the compant has implemented measures to minimize its ecological footprint.
The company’s revenue from operations was Rs 8,033.7 crore for the June 2026 quarter as compared to Rs 7,548.3 crore a year earlier.
Its net profit was Rs 2,398.7 crore for the June 2026 quarter as compared to Rs 2,448.3 crore a year earlier.
SBI Capital Markets Limited, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities, and IIFL Capital Service are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
