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TPG Capital is closing in on a deal to acquire a 30% to 40% stake in India's IIFL Capital Services, potentially becoming the single largest shareholder in the company, local newspaper Economic Times reported on Wednesday.

The deal is estimated to be in the range of 36.36 billion rupees and 48.48 billion rupees ($404.3 million to $539.1 million), the report said, citing people with the knowledge of the matter. The acquisition, if it goes through, will also trigger an additional 26% stake via an open offer, as per the market regulator's rules.

TPG Capital's interest in the financial services firm comes amid IIFL Group founder and billionaire Nirmal Jain's plans to re-enter the wealth management sector following the successful public listing of its unit 360 One in 2019.

U.S. buyout group TPG, TPG Capital's parent, declined to comment, while IIFL Capital Services did not respond to Reuters' request for comment.

Shares of IIFL Capital Services rose as much as 5.3% to 411.30 rupees in early trade before reversing course to tick nearly 2% lower. Its shares rose about 11% last year.