Mumbai, Oct. 8 -- Neo Secondaries Fund is expected to join Kenro Capital in picking up a stake in SK Finance as some early investors explore partial exits in the Jaipur-based non-banking financial company, two people familiar with the matter said.

Long-term backers TPG and Norwest Venture Partners, which have held stakes in the lender for eight to nine years, are expected to be among the selling shareholders, these people added. The conversations are still underway, with Neo and Kenro expected to pick up a combined stake worth Rs.400 crore in the company, they said.

In July, Mint first reported on early investors' talks with Kenro Capital to explore partial stakes in a $50-60 million deal. While emails sent to SK Finance, Norwest, and K...