Mizuho Financial to buy KKR-backed Avendus Capital for expansion in India

By Taiga Uranaka, Siddhi Nayak and Hideki Suzuki

 

Mizuho Financial Group Inc. is buying a controlling stake in KKR & Co.-backed investment bank Avendus Capital Pvt, marking the latest bet by a Japanese lender on India’s rapidly expanding financial services sector.

 

Japan’s third-largest bank got agreement from a major shareholder to purchase 61.6 per cent of the Mumbai-based firm, it said on Wednesday. It is seeking approval from other holders to increase that to 78.3 per cent, for a total purchase price of ₹4,700 crore ($516 million).  

 

The transaction is poised to be Mizuho’s largest investment in India and underscores a broader push by Japanese financial groups to deepen their presence in the world’s fastest-growing major economy. While some rivals are targeting India’s vast consumer market, Mizuho is prioritizing corporate and investment banking. 

 

 

“India has been a missing piece and the partnership with Avendus will fill that,” Mizuho Chief Executive Officer Masahiro Kihara said at a briefing, referring to the Tokyo-based group’s global corporate and investment banking buildup.

 

The deal for Avendus boosts Mizuho’s foothold in India, which has become a hotspot for initial public offerings amid strong economic growth and rising corporate activity. 

 

Founded in 1999, Avendus is a leading player in India’s investment banking, wealth management and asset management sectors, and has advised on some of the country’s largest equity offerings and strategic transactions. Talks with Mizuho had earlier stalled over valuation differences, Bloomberg News reported in September.

 

Mizuho has been seeking to scale its global advisory business by pairing its balance sheet with local expertise rather than building operations from scratch. In 2023, it bought US investment bank Greenhill & Co. to bolster its merger advisory capabilities in the Americas. 

 

Meanwhile, Mitsubishi UFJ Financial Group Inc. is nearing a deal to buy a minority stake in Indian non-bank lender Shriram Finance Ltd., Bloomberg News reported this week. Earlier this year, Sumitomo Mitsui Financial Group Inc. became the largest shareholder of Yes Bank Ltd. in a landmark deal in India. 

 

More Japanese firms in other sectors are expected to expand in the country, giving banks an opportunity to play a role. 

 

“A lot of Japanese companies are considering entering the India market, and it will be a great boost to us to have a strong partner with strong connections with local entrepreneurs,” Kihara said.