New Delhi, Feb. 3 -- IT firm Zensar Technologies is in talks to acquire an 18-20% stake from promoters of mid-sized peer Mastek, three people familiar with the matter told Mint.

The proposed transaction is expected to be valued at over $200 million and could go up to $400 million, though discussions are ongoing and no deal has been finalized, the people added.

The promoter stake sale in Mastek, which has been in the works for some time, is contingent on both sides agreeing on the company's enterprise valuation, one of the people quoted above said.

"The promoters have been wanting to sell for a while now, but, as per their current expectations, the deal could value the company at almost double its current market capitalisation," the per...