Coal India gets nod for Mahanadi Coalfields listing with up to 25% stake sale via IPO, OFS

The disinvestment and capital raising may be undertaken either simultaneously or separately, in one or more tranches, with the overall limit set at reducing Coal India Ltd’s shareholding in MCL by up to 25%. Shares of Coal India Ltd ended at ₹462.15, up by ₹8.35, or 1.84%, on the BSE today, May 15.

The country's largest coal producer, Coal India Ltd, on Friday (May 15), said the Alternative Mechanism (AM) has approved the proposal for the listing of Mahanadi Coalfields Ltd (MCL) through a combination of fresh equity issuance (IPO) and disinvestment by Coal India through an offer for sale (OFS).

The proposal, processed by DIPAM and the Ministry of Coal based on approvals from the boards of Coal India Ltd and MCL, relates to the listing of Mahanadi Coalfields Ltd in the domestic market under SEBI rules and regulations.

As per the approved structure, Coal India Ltd may disinvest its stake in Mahanadi Coalfields Ltd through an OFS of existing shares as part of the IPO and subsequently in one or more tranches.

Mahanadi Coalfields Ltd may raise capital through fresh issue of equity shares as part of the IPO and/or through subsequent FPOs, QIPs or other SEBI-approved methods.

The disinvestment and capital raising may be undertaken either simultaneously or separately, in one or more tranches, with the overall limit set at reducing Coal India Ltd’s shareholding in MCL by up to 25%. The listing process will remain subject to prevailing market conditions and completion of all statutory and regulatory formalities.