MUMBAI, May 18 -- Consumer-focused private equity firm L Catterton, among others, is in talks to acquire a stake in Bengaluru-based restaurant chain Nandhana Palace, three people familiar with the matter said.

"The investment firm may likely acquire a minority stake in the business," one person said.

"The Andhra-cuisine restaurant chain is also in discussions with other funds, but L Catterton may likely have an edge, given its deep expertise in the consumer sector," a second person said.

Mint reported in December that Nandhana had sought a valuation of Rs.2,000 crore when it was in talks with Dubai-based investment firm Pulsar Capital, but that did not materialize.

That valuation was at the higher end and may evolve or change, dependi...