Gautam Thapar-led Avantha Group is in talks with  three private equity (PE) firms for raising $250 million through a structured deal that had promised nearly assured returns to the investors.

The company had mandated Standard Chartered bank's investment banking arm for the deal and approached Kohlberg Kravis Roberts and Co (KKR), Aditya Birla Private Equity and Standard Chartered Private Equity Advisors (India) Pvt Ltd for the capital, Livemint reported citing two people, who declined to be identified but who were directly involved with the transaction.

The company had earlier raised an undisclosed amount of debt from KKR India Financial Services Pvt Ltd, the report Livemint said.

The deal is likely be through a consortium of investors, according to one of the two persons cited above according to the report.

The structured deal would not involve any stake sale. A special purpose vehicle would be created and investors would be issued bonds that could be converted into shares of Crompton Greaves Ltd, Avantha Group's diversified electrical products company.

The report said Avantha Group would issue convertible bonds to the investors offering assured returns after a period of three years. Also depending  on the price of shares of Crompton Greaves, the securities could be converted into shares.

According to Livemint, an Avantha Group spokeswoman declined to comment citing governance guidelines against comment on speculation.  A Standard Chartered spokesman, too, declined comment saying, the lender could not comment on market speculation.