The shares of Future Capital Holdings rose as much as 8.3 percent on indications that the owners will divest the entire stake in the company.

U. S. private equity firm Warburg Pincus LLC is likely to acquire a majority stake in Future Capital form Pantaloon Retail India in a deal valued between $100 and $125 million. Warburg Pincus is expected to pay between Rs. 165 and 170 per share, according sources closer to the matter.

The price is at a premium of about 18-24 percent over the closing price of the company's shares on Friday. The shares of Future Capital were trading at about Rs. 148.25 on the Bombay Stock Exchange before the scheduled board meeting, in which the board members might approve the sale of stake.

The board will discuss the valuation for the entire promoter stake of 56.30 per cent in the company. The remaining stake in the company is held by the general public investors. Pantaloon Retail is aiming to balance its banalce sheet with the sale of stake. According to reports, V Vaidyanathan will continue as the Chairman and Managing Director of the company.

Warburg Pincus manages assets worth about $40 billion globally and has also invested in Indian companies across sectors.