Coal India plans $1 billion IPO of unit Mahanadi Coalfields

what happened

State-owned Coal India Ltd. is preparing an initial public offering of its subsidiary Mahanadi Coalfields Ltd., Moody's reports, citing people familiar with the matter. According to them, the share sale could launch as early as this month, with investor meetings already underway and a target window in the second half of November or early December.

The sources said the offering could raise up to $1 billion and value Mahanadi Coalfields at as much as $10 billion. Size, valuation and timing are still under discussion and could change.

why it matters

The deal matters for India's coal sector as a step toward bringing part of a state giant's assets to the public market. Investors will watch the final valuation and terms, since they will set a reference point for how Indian coal companies are priced.

market impact

Indian coal stocks: a public valuation of the subsidiary could set a reference point for the sector.

tags

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