Coal India Limited (CIL) has received in-principle approval from its Board to divest up to 25% equity shares in its wholly-owned subsidiary, Mahanadi Coalfields Limited (MCL). The divestment will be executed through an Offer for Sale (OFS) in one or more tranches, utilizing Initial Public Offering (IPO) or other permissible market routes. This strategic move follows a prior approval for MCL’s listing, granted in December 2025. The final execution is contingent upon regulatory approvals.
Board Decision on Subsidiary Divestment
The Board of Directors of Coal India Limited (CIL) has formally accorded in-principle approval for a significant strategic transaction involving its subsidiary, Mahanadi Coalfields Limited (MCL). This approval, finalized during the Board meeting on March 23, 2026, permits the divestment of up to 25% of the equity shares currently held by CIL in MCL.
Method and Timeline of Transaction
The transaction is slated to be executed through an Offer for Sale (OFS) mechanism. This divestment will occur in one or more tranches, utilizing methods such as an Initial Public Offering (IPO) or other authorized domestic market routes. This action is in compliance with the relevant securities regulations. This move follows an earlier decision from December 23, 2025, when the Board first approved the listing of MCL.
Next Steps and Conditions Precedent
The approval granted by CIL is conditional and subject to several key factors. Firstly, the approval must be communicated to the Ministry of Coal (MoC) for subsequent submission to the Department of Investment and Public Asset Management (DIPAM). Secondly, the proposed listing and subsequent divestment remain contingent upon the receipt of all necessary regulatory approvals, favorable market conditions, and the successful completion of all required formalities.
Source: BSE
