Two U.S.-based private equity firms are interested in acquiring minority stakes in Max Financial Services Ltd., as the Indian company seeks to raise funds for a potential acquisition in the insurance sector, two people close to the development told Mint.

Blackstone Group LP and Warburg Pincus LLC are in separate talks to invest in Max Financial, the people said. Blackstone and Warburg Pincus did not respond to Mint's emails. The potential investments are subject to Max Financial unit Max Life Insurance Co. Ltd. making an acquisition, one of the people said.

The report came after Max Financial said in April that it received fundraising proposals from Standard Chartered Bank, KKR Capital Markets India, TPG Global LLC and others. In February, the company announced plans to raise up to 50 billion rupees for potential acquisitions in the insurance industry.

Max Life has been scouting for acquisitions and has held talks with several parties since the termination of its merger with HDFC Standard Life Insurance in July 2017. Max Life and another bidder have reportedly been shortlisted to buy a significant stake in IDBI Federal Life Insurance Co. Ltd.

As of May 9, US$1 was equivalent to 67.31 Indian rupees.