Mahanadi Coalfields Limited (MCL), a wholly owned subsidiary of Coal India Limited, is likely to launch its maiden public offering next week, according to sources.
The issue size is expected to be around $1 billion, or approximately Rs 9,500 crore, people with knowledge of the matter said.
The proposed public issue will comprise an offer for sale (OFS) of up to 66.18 crore equity shares by Coal India, according to the company's draft red herring prospectus (DRHP).
Coal India plans to divest up to 10% of its stake in Mahanadi Coalfields through the proposed IPO. The issue will be conducted through the book-building route, with the company's equity shares proposed to be listed on the National Stock Exchange (NSE) and BSE.
SEBI issued its final observations on the draft offer document on November 4, clearing the way for the company to proceed with preparations for the public issue.