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Govt Greenlights Mahanadi Coal IPO
18 May
Summary
- Mahanadi Coalfields IPO approved by government committee.
- Coal India aims to divest up to 25% stake in MCL.
- Listing includes fresh equity and offer for sale.
The government has officially approved the initial public offering (IPO) for Mahanadi Coalfields Ltd (MCL). This significant move allows for the disinvestment of up to 25% of Coal India Ltd's stake in MCL. The listing process will involve a combination of issuing new equity and Coal India offering existing shares through an Offer for Sale (OFS).
MCL may also raise additional capital through subsequent follow-on public offers or other SEBI-permitted methods. These disinvestment and capital-raising efforts could occur simultaneously or separately, subject to market conditions and regulatory clearances. The Prime Minister's Office has set a deadline of 2030 for listing all Coal India subsidiaries.
