Coal India, the world’s largest coal producer, is selling a 10% stake in Mahanadi Coalfields through the ​fully owned subsidiary’s initial public offering, draft papers ​filed with the market regulator showed.

State-run Coal India is ‌offloading up to 661.8 million shares in its unit, according to the prospectus dated Monday. Mahanadi Coalfields is not selling any new shares in the offering and will not receive any proceeds. The unit operates primarily in the eastern state of Odisha and accounted for 21% of India’s overall domestic coal production and 28.4% of Coal India’s total coal production in fiscal year 2026.

Coal India, which contributed about 74% of ‌India’s total coal production in fiscal 2026, had said in March it could sell up to 25% stakes in subsidiaries Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes. The company has listed two other units this year: Bharat Coking Coal, which went public in January, is down about 25% from ​its debut price, while Central Mine Planning & Design Institute is up 39% since its ‌March listing.

Mahanadi Coalfields’ net profit slipped about 1.3% to ₹10,678 crore ($1.12 billion) in the year ended March 31; ​revenue ‌fell 2.6% to ₹30,550 crore. The IPO filing comes as ‌India’s primary market sees a revival after a sluggish start to the year amid a selloff spurred by the US-Israeli war ‌on ​Iran.

SBI Capital ​Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services are managing the IPO.

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