New Delhi, July 9 -- Vibgyor Group of Schools, a prominent school chain based in Mumbai, is looking to raise external capital for the first time through a minority stake sale, becoming the latest K-12 school chain to tap renewed private equity interest in India's school sector, according to two people familiar with the matter.

The school chain is looking to sell a minority stake of upto 30%, according to two people aware of the development. Vibgyor has appointed Avendus Capital as the banker for the transaction, the people told Mint.

"The company is looking to use the funds for expansion and has begun a managed process for this fundraise with Avendus," one of the people cited above said.

The second person said the company is seeking a ...