Promoter, Future Group is planning to sell its entire stake in Future Capital Holdings to Warburg Pincus, a private equity firm based in the US.

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.

The board of the Future Group has approved the sale of its 56.30 per cent stake in the company to Warburg Pincus on Monday. Cloverdell Investment, an affiliate of Warburg, will pay Rs 5.6 billion for the acquisition.

Under the agreement, Pantaloon Retail India, and its subsidiary Future Value Retail will sell their stakes in Future Capital Holdings. Pantaloon Retail is aiming to balance its balance sheet with the sale of stake. V Vaidyanathan is likely to 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.