MT Educare Limited (BSE:534312) is in talks with private equity firms and structured finance funds to raise as much INR 1.5 billion, according to two people with direct knowledge of the development. "The company has dropped its plans to raise money through QIP due to a valuation mismatch and is now in talks with private equity firms including those who provide mezzanine financing for the same," said one of the people cited earlier. Both people spoke on condition of anonymity.