Mahanadi Coalfields IPO: Mahanadi Coalfields Ltd (MCL), a subsidiary of Coal India Limited, is planning to float an IPO. The government is likely to divest a 25 per cent stake in the company via IPO.
According to a PTI report, the government has approved a proposal to list Mahanadi Coalfields shares on the bourses and divest up to 25 per cent of the stake.
Coal India is a Maharatna PSU under the Ministry of Coal.
Coal India said that DIPAM/MoC has processed a proposal seeking approval of the Alternative Mechanism (AM) for the listing of Mahanadi Coalfields Ltd, based on the approvals accorded by the board of Coal India Ltd (CIL) and the board of MCL. The AM has approved the proposal for disinvestment/listing of MCL.
Mahanadi Coalfields IPO OFS
The listing would happen through a combination of fresh equity issuance and disinvestment by Coal India through an offer for sale.
"CIL may disinvest its stake in MCL through Offer for Sale (OFS) of existing shares as part of the IPO of MCL and subsequently in one or more tranches," the filing said.
The filing said that MCL may also raise capital through fresh issuance of equity shares as part of the IPO and/or through subsequent follow-on public offers (FPOs), qualified institutional placements (QIPs) or other methods permitted by the Securities and Exchange Board of India (SEBI).
Mahanadi Coalfields IPO: Disinvestment
The disinvestment and capital raising could be undertaken simultaneously or separately, and may be executed in one or more tranches, subject to market conditions and regulatory approvals.
Earlier, the Prime Minister's Office (PMO) had directed the Coal Ministry to ensure that all subsidiaries of CIL are listed on stock exchanges by 2030.
