Indian billionaire Gautam Adani and Wilmar International Ltd are in early talks with banks to sell a minority stake in their consumer joint venture (JV) Adani Wilmar Ltd, people familiar with the matter said, helping the company abide by shareholding regulations.

The owners are exploring selling equal stakes that may total 13% in Mumbai-listed Adani Wilmar, said the people, asking not to be identified as the information is confidential. A sale that size would be valued at roughly US$670 million as of Tuesday, and could take place as early as the coming months, the people said.

Shares of Adani Wilmar have slid 6.8% this year, valuing the company at about US$5.1 billion.

The partners may opt to sell their stakes in one or multiple tranches, depending on investor appetite, the people said. Adani and Wilmar have until February next year to pare their combined holding to 75%, in line with Securities Exchange Board of India (Sebi) requirements.

Considerations are ongoing, and details such as the size of the stake sale and timing could still change, the people said.

Representatives for Adani Group and Wilmar International declined to comment, while Adani Wilmar didn’t have any immediate comment.

Adani and Wilmar’s stakes together account for nearly 88% of the company’s shares. Sebi requires that large firms must have at least 25% of shares available to the public within three years of the date of the listing.

Established in 1999, Adani Wilmar makes Fortune brand cooking oils, wheat flour, pulses, rice and sugar, according to its website. It owns 23 plants across 10 states in India.

  - Bloomberg