Singapore state investor Temasek Holdings, Standard Chartered Private Equity and buyout firm Kohlberg Kravis Roberts and Co. (KKR) are in the final round of discussions for a US$125 million ($173 million) investment in Indian Coffee Day Holdings Co., according to people familiar with the development, a report in India's Mint newspaper said.

Coffee Day Holdings is the holding entity of Cafe Coffee Day, India’s largest cafe chain, Coffee Day Hotels and Resorts, broking firm Way2Wealth Brokers, venture capital firm Global Technology Ventures and Tanglin Development, which is developing technology parks in Bangalore and Mangalore.

The company would attract a valuation of around US$500 million post-dilution of share capital, translating to a stake of up to 24% for the investors, people involved in the fund-raising process said.

Coffee Day Holdings could also be discussing parallel deals with two of the three funds for raising up to US$125 million, the people said.

When contacted, Coffee Day Holdings’ chief financial officer Monish Gopinath declined to comment on the latest developments.