Mahanadi Coalfields (Tentative price band) IPO

Mahanadi Coalfields Limited was incorporated in 1992 and is headquartered in Sambalpur, Odisha. The company is engaged in coal exploration, mining, production and supply, with operations concentrated in the Talcher and Ib Valley coalfields. As of June 30, 2026, it operated 17 mines, comprising 14 opencast mines and three underground mines, supported by mechanised mining equipment and integrated coal evacuation infrastructure. Its operations include coal handling plants, rapid loading systems, railway connectivity and the Ib Valley Coal Washery, which has an installed capacity of 10 million tonnes per annum. MCL primarily supplies thermal power plants and also serves industrial customers in sectors such as cement, steel, aluminium, sponge iron and paper. The company benefits from its large geological resource base of approximately 40.34 billion tonnes and its established rail-linked distribution network. It is a wholly owned subsidiary of Coal India Limited, with the President of India and Coal India Limited forming its promoter group.

Mahanadi Coalfields Limited IPO is a mainboard book-built issue comprising an offer for sale of up to 66,18,36,300 equity shares by Coal India Limited, aggregating approximately ₹8,272.95 crore at the upper price band of ₹125 per share. The price band is ₹118 to ₹125, with a lot size of 120 shares and a face value of ₹2 per share. The IPO is scheduled to open on November 18, 2026 and close on November 20, 2026, with tentative allotment on November 23 and listing on November 26, 2026. Since the issue is entirely an OFS, Mahanadi Coalfields will not receive any proceeds from the offer, and the proceeds will go to the selling shareholder. The company reported FY26 revenue of ₹33,899.28 crore and profit after tax of ₹10,698.12 crore, with a reported EPS of ₹16.13 and an indicative P/E of 7.75x at the upper price band. Its large coal resource base, established mining operations and strong profitability are key strengths, while dependence on thermal coal, government and parent-company control, environmental obligations, land acquisition requirements and regulated coal pricing are important risks. The indicative valuation is close to Coal India Limited's reported P/E of 7.45x, while Bharat Coking Coal Limited's reported P/E is substantially higher at 245.15x. Investors should also consider that the OFS provides no direct capital infusion into the company's balance sheet.