Avendus, an Indian institutional financial services firm, said on Wednesday that Redpoint Investments, an affiliate of KKR, will sell its stake in the company to Mizuho Securities Co. Ltd, a unit of Mizuho Financial Group. Avendus co-founder and executive vice chairman Ranu Vohra will also sell his stake and will remain in his role until the deal is completed, subject to all statutory and regulatory approvals.
The Economic Times had reported on December 15 citing unnamed officials that Mizuho Financial Group is finalising terms to acquire KKR-backed Avendus Capital at a Rs 5,900-crore valuation, almost six months after it had first agreed to buy the home-grown investment bank.
Reuters reported Japan’s Mizuho Securities will buy a majority stake in the Indian investment bank Avendus from US investment firm KKR for up to 81 billion yen ($523 million).
The buyout adds to the growing presence of Japanese financial institutions in India, as the country’s fast-growing economy attracts firms from Japan, where the population is ageing and shrinking.
Mizuho Securities, part of Japan’s third-largest banking group, Mizuho Financial Group, said it will buy between 61.6% and 78.3% of Avendus and make the firm a consolidated subsidiary.
Avendus will continue to be run by its founders, Gaurav Deepak and Kaushal Aggarwal, along with the firm’s senior leadership team, to ensure continuity in its vision and strategy as it moves into its next stage of growth. The firm will keep its brand and identity, while gaining access to Mizuho’s scale, institutional network and global reach.
Mizuho Financial Group is one of the world’s largest full-service financial institutions. In Japan, it serves more than 20 million retail clients and around 80% of listed companies through a strong domestic network. Outside Japan, Mizuho is expanding its presence and offers a full range of corporate and investment banking services through more than 100 offices worldwide.
“Mizuho mirrors our values, vision, and ambition to shape the future of financial services with purpose and impact. Together, we look forward to bringing innovative capital solutions to the Indian ecosystem, and leveraging our complementary strengths to create deeper financial and economic flows between India and Japan,” Gaurav Deepak, Co-founder and CEO of Avendus Group, said.
Mizuho chief executive Masahiro Kihara said at a press briefing in Tokyo that the group has been receiving more enquiries from banking clients about expanding into India.
Kihara said the acquisition will strengthen Mizuho’s ability to work across regions, including with US mergers and acquisitions adviser Greenhill, which it bought in 2023.
“Avendus has been walking side- by-side with the entrepreneurs supporting India’s rise, and it makes us very happy to be able to welcome them as one of our key partners. Their journey parallels our own journey of innovating together with clients for social and economic development. With them, we aim to evolve into a truly global financial institution that creates new value by bridging diverse cultures beyond national and regional boundaries,” Kihara said.
Yoshiro Hamamoto, president and chief executive of Mizuho Securities, said that Avendus has a strong position in India at a time of rapid growth. He said bringing Avendus in as a strategic partner for Mizuho’s mergers and acquisitions platform in Asia-Pacific, the Americas and EMEA would help the group support clients with a wider range of advanced solutions, using its global client base and financial capabilities. He added that Mizuho would work closely with Avendus’ leadership and that the two firms would aim to deliver greater benefits for clients.
Kaushal Aggarwal, co-founder of the Avendus Group, said the partnership was about more than capital and reflected a shared view of what the future of financial services from India could be. He said Avendus and Mizuho would work together to offer broader capabilities, better execution and a stronger value proposition for clients. He added that, as India enters a major phase of economic change, the firms see strong potential to scale in a purposeful way, innovate across sectors and build a platform that delivers impact in India and overseas.
Meanwhile, Bloomberg reported on December 15, citing unnamed sources, that Mitsubishi UFJ Financial Group is close to a deal to buy a minority stake in India’s Shriram Finance. This would be the latest move by a foreign bank to build a presence in the world’s most populous country.
Japan’s Sumitomo Mitsui Financial Group had bought a 24.2% stake in Indian lender Yes Bank earlier this year.
