Mumbai, Aug. 4 -- Coal India Ltd's subsidiary Mahanadi Coalfields Ltd (MCL) has appointed SBI Capital Markets, Axis Capital, IIFL Capital Services, IDBI Capital Markets and Bank of Baroda Capital Markets as merchant bankers for its proposed initial public offering (IPO), two people familiar with the matter said.

The issue is likely to be sized around Rs.10,000 crore, one of the people cited above said. "It could range between Rs.8,000-15,000 crore and will comprise only an offer for sale (OFS), with Coal India selling a part of its stake in the company, the second person added.

"The appointments were approved a few days back with SBI being the left lead. It's early days for discussions around valuations," one of the people cited above s...