The Blackstone Group Inc. (NYSE:BX), KKR & Co. Inc. (NYSE:KKR), Apax Partners LLP, Advent International Corporation and Bain Capital, LP are among the companies engaged in early-stage discussions to acquire Granules India Limited (BSE:532482). The Chigurupati family, the founding promoter, holds 43% stake in Granules that has roped in Kotak Mahindra Capital for the sale, top industry sources told ET.

PE funds see Granules as a good opportunity as manufacturing of their global pharma portfolio companies can be outsourced and APIs and bulk drugs can be exported at a cheaper price, said an official following the ongoing negotiations closely. “We have been approached mid-October (for the acquisition) and we are evaluating the prospect," a PE fund manager said, on the condition of anonymity, as the talks are in private domain. The founders are believed to be keen on a control premium, valuing the company at $500 million - $550 million.

Priyanka Chigurupati, Executive Director of Granules Pharmaceuticals Inc., declined to comment. The investor relations team at Granules India denied the promoters are seeking to sell their stake. “The promoters have not given any mandate to either Kotak Mahindra Capital or any other investment bank on this matter.

The promoters are fully committed to the business," said Sai Prasad Madishetti, a member of the Investors Relations- Treasury team at the company. Spokespersons with KKR, Apax, Bain and Advent declined to comment, while a mail sent to Blackstone did not elicit any response.