The central government has approved the proposal for listing of Mahanadi Coalfields Limited (MCL) through a combination of fresh equity issuance and stake sale by Coal India Limited (CIL).
Under the approved proposal, CIL may dilute up to 25 per cent of its shareholding in MCL through an offer for sale as part of the company’s initial public offering (IPO) and through subsequent tranches. MCL may also raise capital through fresh equity issuance as part of the IPO, or through follow-on public offers, qualified institutional placements, or other Securities and Exchange Board of India-approved routes. The stake sale and capital raising may be undertaken simultaneously or separately in one or more tranches.