Overseas funds seek to buy $400-500 mn stake in Aditya Birla Retail

L Capital, Temasek Holdings and International Finance Corp are in advanced talks to buy a 30% stake in the retail arm of Aditya Birla Group for about $400-500 million, two sources with direct knowledge of the matter told Reuters.

The sources said the three private equity funds are looking to buy the stake in Aditya Birla Retail, which includes apparel maker Madura Fashion & Lifestyle, department store chain Pantaloons and supermarket chain More.

"The talks are quite advanced and are in the final lap," said one of the sources.

Aditya Birla Group will use the funds to expand its retail operations, the sources also said, declining to be named as the talks are still private.

Temasek and Aditya Birla Group declined to comment. L Capital, the private equity arm of LVMH Moet Hennessy Louis Vuitton SA , and World Bank unit IFC were not immediately available for comment.