Coal India Ltd. is preparing a share sale of its unit Mahanadi Coalfields Ltd. as early as this month, according to Economic Times. The offering could raise as much as $1 billion.
Coal India shareholders have a second event to note. Today, 3 November, is the last day to buy the stock to qualify for its ₹10.25 interim dividend. This story explains both in plain words.
What happened with the IPO plan
The report is based on Bloomberg, which was also published by The Hindu BusinessLine. It quotes people familiar with the matter. They did not want to be named because the information is private.
According to these people, Coal India has started meeting investors. It wants to open the share sale in the second half of November or in early December. The offering could value Mahanadi Coalfields at as much as $10 billion.
Nothing is final. The people said the size, value and timing could still change. Representatives of Coal India and Mahanadi Coalfields did not reply to requests for comment. So treat the timing as a plan, not an announced date.
The company has already filed a draft prospectus with the Securities and Exchange Board of India (SEBI). A draft prospectus is the document that lists the company's details and the terms of a planned share sale.
The IPO numbers
The prospectus shows that the IPO is an "offer for sale". This means Coal India sells some of its own shares. Mahanadi Coalfields itself will not issue new shares and will not receive the money.
| Item | Detail |
|---|---|
| Possible amount to be raised | Up to $1 billion |
| Possible value of the company | Up to $10 billion |
| Shares on offer | Up to 661.84 million (10% stake) |
| Fresh issue | None |
| Coal India's current holding | 100% |
| Expected timing | Second half of November or early December |
The table sums up the reported plan. By our calculation, a 10% stake in a company worth $10 billion is $1 billion, which matches the two figures in the report.
Five firms are the book-running lead managers: SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets & Securities and IIFL Capital Services. These are the banks that manage the sale.
The prospectus also describes the business. Mahanadi Coalfields was India's largest coal producer by output in the year ended March 2026. It produced 218.31 million tonnes, about 22.4% of the country's non-coking coal production. On 30 June it ran 17 mines: 14 open-cast and three underground.
Bloomberg also noted that Coal India's unit South Eastern Coalfields Ltd. has filed for an IPO. We covered that filing in our report on record October coal supply and the SECL filing.
Where the IPO market stands
Bloomberg said Mahanadi Coalfields could be among the biggest Indian IPOs still to come this year. Several offerings are lined up for November and December. Companies have raised about $18.48 billion through IPOs in India so far in 2026. The record is $22.36 billion, set in 2025.
By our calculation, the gap to that record is about $3.88 billion. A $1 billion offer would cover part of it. For other offers, see our IPO section.
The dividend: what shareholders need to know
Coal India's board declared a second interim dividend of ₹10.25 per share for FY27. The face value of each share is ₹10. Livemint says it followed the September-quarter results on 29 October.
The record date is Wednesday, 4 November 2026. The record date is the day the company checks its list of shareholders. Only people on the list get the dividend. Under the T+1 settlement cycle, shares bought on a day reach the buyer's demat account the next trading day. So Tuesday, 3 November, was the last day to buy. Shares bought on 4 November do not qualify.
The dividend will be paid on or before 27 November, through RBI-approved electronic modes, according to Livemint and Economic Times. Economic Times says Coal India has the highest payout among the stocks with a 4 November record date.
Livemint gives some history for the November payouts:
- November 2025: ₹10.25 per share (second interim)
- November 2024: ₹15.75 per share (interim)
- November 2023: ₹15.25 per share (interim)
Livemint puts the yield of this dividend alone at about 2.5%, using a reference price of ₹408. Over the last 12 months, the payout was ₹26.50 per share, a yield of about 6.5% at the same price. Economic Times also says the yield is above 6.5%. The two figures match; the 2.5% is only this one payout, and the 6.5% is the trailing 12-month total.
The September-quarter results behind the payout, per Livemint: consolidated net profit rose 53% from a year earlier to ₹6,516 crore. Revenue from operations grew 20.9% to ₹44,179 crore.
Share price and returns
The Economic Times live page showed Coal India at ₹407.2 on 3 November, down 0.2%. It noted a six-month return of -15.47%. Livemint shows other periods:
| Period | Change in share price |
|---|---|
| One week | +2.51% |
| One month | -2.95% |
| Year to date | +1.89% |
| One year | +5.01% |
| Three years | +30.77% |
| Five years | +140.35% |
The table shows that the picture depends on the time frame. The five-year gain is large, while the six-month figure is negative. The two sources use different periods, so the numbers do not conflict.
What it means for a common investor, and the risks
For a small investor, the IPO is a chance to learn how a large state-owned company can list a part of its business. Because it is an offer for sale, the money goes to Coal India, not to Mahanadi Coalfields. Coal India has not said how it will use the money in the sources we reviewed.
A dividend is not a free gain. When a stock goes ex-dividend, its price can adjust for the payout. A high yield also does not guarantee good returns, as Livemint notes, because price moves can add to or cancel the income.
Risks to keep in mind:
- The IPO details come from unnamed sources and could change, including size, value and date.
- The $10 billion value is the top of a reported range, not a fixed price.
- The sources do not give a price band or issue dates yet.
- Past dividends and returns do not promise future ones. The November payout was ₹15.75 in 2024 and ₹10.25 in 2025.
- The IPO market is busy, and many offers are lined up for the same weeks.
This is not advice to buy or sell. Please read the final prospectus before any decision. For more background, see our markets and business pages.
What to watch next
- Whether Coal India or Mahanadi Coalfields confirms the timing, size and value of the IPO.
- The price band and dates in the final offer document, which is filed on the BSE and NSE websites and with SEBI.
- Payment of the dividend on or before 27 November.
- Progress on the South Eastern Coalfields IPO.
Words explained
- Initial Public Offering (IPO): the first time a company offers its shares to the public to buy.
- Offer for sale: a share sale where existing owners sell their shares. The company gets no new money.
- Draft prospectus: a document filed with SEBI that gives company details and sale terms before the final offer.
- Book-running lead manager: a bank that manages the IPO and finds buyers.
- Non-coking coal: coal mostly used to make power, not steel.
- Record date: the day the company checks who owns its shares to decide who gets the dividend.
- Interim dividend: a dividend paid during the year, before the final one.
- Dividend yield: the dividend per share divided by the share price, shown as a percentage. A ₹5 dividend on a ₹100 share is a 5% yield.
- T+1 settlement: shares reach your demat account one trading day after you buy.
Sources: Economic Times, The Hindu BusinessLine (Bloomberg), Livemint.
This article is for information and education only. It is not investment advice. MarketUpDown is not registered with SEBI as an investment adviser or research analyst. Read our disclaimer.