New Delhi, March 26 -- Everstone-backed Subway India has begun preparations for an initial public offering that could raise between $100 million and $150 million, three people familiar with the matter said.

The company has held banker pitches over the last few weeks and formal appointments are expected in the coming weeks, the people cited above said on condition of anonymity.

"The entity doesn't need much primary capital and the public listing would largely facilitate a partial exit for its early investor Everstone although the exact contours are subject to change as the discussions are still preliminary," one of the people cited above said.

The proposed listing comes at a time when India's $80-billion food services market is expandin...