New Delhi, Aug. 12 -- South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd, has initiated the process of appointing investment banks for an initial public offering, according to a document reviewed by Mint.

SECL's proposed IPO, which is expected to be a mix of a fresh issue of shares and an offer for sale by the parent company, is likely to be worth around Rs.8,000 crore to Rs.10,000 crore, two people aware of the matter told Mint. The coal producer is seeking four to five bookrunning lead managers to structure and manage the public issue.

Coal India plans to divest up to 25% of its shareholding in the subsidiary over time, the document showed. The initial tranche will comprise an offer for sale of at least 10% of Coal In...