Mumbai, Dec. 25 -- A clutch of investment firms including Dubai-based Pulsar Capital, is in discussions to acquire a stake in Bengaluru-based Nandhana Palace, an Andhra-cuisine restaurant chain, two people familiar with the matter and a company representative told Mint.

"The investment firm is evaluating a $50-60 million investment," one of the people said, adding that the transaction is likely to close in the coming weeks.

After publication of the story online, a Nandhana Palace representative clarified that its promoters are not in talks to sell the business but are in discussions with private equity firms including Pulsar to fund the next phase of growth for the business ahead of a planned initial public offer within two years.

"The...