Piramal Enterprises Limited (BSE:500302) has started discussions with private equity investors to divest up to a 20% stake in its over-the-counter (OTC) drugs business, multiple industry sources said. "The management has begun preliminary talks with global funds. The company is looking at partly selling stake and raising money to acquire other businesses," said an investment banker.

Management meetings with global funds took place in December 2015 and an official information memorandum is expected to be sent out to funds later in January 2016.