The Indian government has given the green light for Mahanadi Coalfields Limited (MCL) to proceed with its initial public offering (IPO), marking a significant step in the disinvestment strategy of state-run enterprises. MCL, a subsidiary of Coal India Limited (CIL), is one of the largest coal producers in India, predominantly operating in Odisha. The approval from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal allows CIL to dilute its stake in MCL by up to 25% through an offer for sale (OFS) as part of the IPO. MCL will also have the opportunity to raise fresh capital through equity shares during the IPO and subsequent public offerings. The disinvestment and fundraising could occur either simultaneously or separately and may take place in multiple tranches, subject to market conditions and regulatory requirements. This initiative follows the successful IPO of Coal India's subsidiary, Central Mine Planning and Design Institute Ltd (CMPDI), which raised ₹1,841.45 crore (approximately $220 million USD) in March 2026. Meanwhile, Coal India shares have shown a positive trend, closing at ₹462.20.