New Delhi, April 26 -- Mumbai: Promoters of Lucknow-based CP Milk and Food Products are in early talks to sell a 10-15% stake to private equity investors, a deal that could value the dairy company at Rs.2,500-3,000 crore, two people familiar with the matter said.

"The deal was launched a few days ago and several private equity funds have been tapped," one of the people cited above said. The company will raise about Rs.300-400 crore to expand its geographical and product footprint, the second person said on the condition of anonymity.

The company has appointed O3 Capital as its advisor to help raise funds, the people added.

If the fundraise goes as planned, it will mark the company's first round of external capital.

O3 Capital and CP M...