Coal India Limited (CIL) has granted in-principle approval for the divestment of up to 25% of its equity shares in Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary. This decision was made during a board meeting held on 23 March 2026.
The divestment will be executed through an Offer for Sale (OFS) in one or more tranches. The process may involve an Initial Public Offering (IPO) or other permissible market routes within the domestic market, adhering to the applicable provisions of the SEBI (ICDR) Regulations, 2018, and the Securities Contracts (Regulation) Rules, 1957.
The approval for this divestment will be communicated to the Ministry of Coal for forwarding to the Department of Investment and Public Asset Management (DIPAM). The listing of MCL is contingent upon receiving the necessary regulatory approvals, favourable market conditions, and the completion of requisite formalities.
This strategic move by Coal India is aimed at unlocking value and enhancing shareholder returns through the partial divestment of its stake in MCL.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).