US private equity firm TPG is in discussion with the promoter and other large shareholders in India's biggest gold-for-loans company, Manappuram Finance. The discussion revolved around the purchase of a minority shareholding in the company, according to three sources with direct knowledge of the discussions.

The promoter is VP Nandakumar, who is listed as owner of 31.55% in the company while 20% is owned by Barings Private Equity Partners India, India Equity Partners and AA Development. The move is one step towards a renewal in the industry after regulatory actions had turned off many investors to the industry last year.

One of the sources said, "TPG has made an offer for a minority stake but with governance rights and board seat. The stake sale could be a mix of buying some of the existing investors and a preferential share issue by the company or through a direct preferential share issue to the PE fund."

Nandakumar, for is part, told the Economic Times last week he had no plans to sell his shareholdings. He added, "I have no plans to sell, PE investors may be talking to each other."