Mumbai, Oct. 14 -- Global private equity firm Blackstone is in talks to invest $400-500 million in Bengaluru-based defence and avionics technology company Accord Software Systems Pvt Ltd (ASSPL) for a significant minority stake, three people with direct knowledge of the matter said.

The potential deal underscores growing private equity and venture capital interest in India's defence technology sector, as rising geopolitical tensions worldwide drive demand for advanced military technologies and push countries to strengthen domestic defence capabilities.

"Blackstone is in talks to pump growth capital into the company for a significant minority stake," the first of the three persons cited earlier said, all speaking on condition of anonymit...