Future Ventures India Limited is in discussions with Avigo Capital Partners to acquire its stake in Spykar Lifestyles Pvt. Ltd., CNBC-TV18 reported. Avigo Capital owns 60% stake in Spykar and is said to be seeking to exit its investments since March 2011.

Kishore Biyani and his team will meet the management of Avigo Capital during this week to discuss the deal, sources said. Avigo Capital is seeking an enterprise value of about INR 3 billion for its stake, which is around 15 times Financial Year 2012 EBITDA of Spykar at about INR 200 million. This valuation is set to be slightly more expensive.

Avigo Capital might settle for a valuation of about INR 2 billion – INR 2.5 billion for Spykar, according to the reports. Avigo Capital might prompt a 100% sellout of Spykar to its strategic investor, sources said. Future dismissed report and said that it was very speculative.

Spykar confirmed that it was in discussions with players to sell its stake but it declined MoneyControl to comment whether Future Ventures was one of these. The spokesperson said that they were in discussions with two domestic players as well as two international players and that the deal can be signed as early as March 2013.