The firm will pay INR1.82bn ($33.6m) for the stake according to the Times of India, which cited people briefed on the matter.
It said Multiples was in the final stage of due diligence ahead of completing the deal.
Milltec produces machinery for milling of agricultural products such as rice and maize as well as pulses processing.
Multiples has more than $400m of private equity funds under management and currently holds five portfolio companies.
They are drilling equipment manufacturer Sara Sae, the Indian Energy Exchange, Cholamandalam Investment and Finance, South Indian Bank and PVR Cinemas.
The firm aims to make mid to late stage investments in mid-sized Indian companies, including listed businesses.
Each investment is between $15m and $50m, with Multiples expecting to build a portfolio of up to 18 companies.
Two months ago it emerged India’s sole food and agriculture-focused private equity firm, Rabo Equity Advisors, was planning to launch a new $250m fund.
At the time the firm had enough capital to make two more deals through its $120m debut fund, Rabo chairman and managing director Rajesh Srivastava told Live Mint.
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