Three investors, whose exit from diagnostics company SRL Ltd was stalled after a legal setback, have started selling their stakes, reported The Economic Times.

NY Jacob Ballas, Siguler Guff & Co and International Finance Corp are expected to sell their combined 31.5 percent stake in SRL by September, said the report citing two people involved in the deal.

The three investors have appointed Kotak Mahindra Capital as the merchant banker for the deal, said the report.

“The three PE firms expect to sell their combined holding for about Rs 1,250 crore, resulting in a total valuation of Rs 3,600-4,000 crore for SRL,” one person was quoted as saying in the report.

As per the report, two other investors, i.e. Axis Bank and the family of Gurinder Singh Dhillon of Radha Soami Satsang Beas may exit from the company.