Loop, which owns a mobile telephony licence for the Mumbai circle, is in negotiations with Airtel and other telecom firms to sell its business in a Rs 750-crore (Rs 7.5-billion) deal.
Loop Mobile has debt of Rs 400 crore (Rs 4 billion), which is likely to be included in final deal size.
While Loop and Airtel declined to comment, sources privy to the negotiations said Loop was in talks to sell both its mobile and tower business.
Loop holds 8 megahertz of spectrum in the premium 900 MHz band, which as per latest base price, is valued at Rs 2,624 crore (Rs 26.24 billion).
The operator has about 2,000 operational mobile tower sites, of which 500 are company-owned.
Some suitors want only Loop's mobile business, while a few are interested in the combined entity.
If Airtel buys Loop's mobile business, the Khaitan-owned company will sell the tower business separately.
A successful deal will reduce the number of claimants for the premium 900 MHz band in the Mumbai service
Idea closing in on bigger rivals
Brand Airtel: Is there a wake-up call?
Can new CEO guide Airtel through its existential crisis?
Telecom industry needs to hike call rates: Airtel
Government plans to finalise spectrum charges before auction