Coal India has received approval from the Alternative Mechanism for the listing of its subsidiary, Mahanadi Coalfields Limited (MCL), through a fresh issue of equity shares and the disinvestment of up to 25% of Coal India‘s stake in MCL.
The decision follows approvals from the boards of both Coal India Limited (CIL) and Mahanadi Coalfields Limited (MCL). The disinvestment will be conducted through an Offer for Sale (OFS) of existing shares as part of MCL’s Initial Public Offering (IPO), with the possibility of subsequent tranches.
Additionally, MCL is authorised to raise capital through fresh equity issues as part of the IPO or through subsequent Follow-on Public Offerings (FPOs), Qualified Institutional Placements (QIPs), or other methods approved by the Securities and Exchange Board of India (SEBI).
The disinvestment and capital raising activities may occur simultaneously or separately, in one or more tranches, but will collectively aim to reduce Coal India’s shareholding in MCL by up to 25%.
The proposed listing of MCL is contingent upon prevailing market conditions and the completion of all necessary statutory and regulatory formalities.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).