Mizuho Set to Acquire Avendus Capital at ₹5,900 Crore Valuation: A Landmark Deal in India’s Investment Banking Sector
Mizuho Financial Group is set to finalize one of the most significant acquisitions in India’s financial services space with the purchase of KKR‑backed Avendus Capital at an estimated valuation of ₹5,900 crore. After nearly six months of intense negotiations marked by valuation disagreements and shareholder deliberations, the Avendus board is expected to formally approve the transaction this week. A public announcement is likely soon after.
A Transformational Transaction
The acquisition will include a complete exit by KKR, which currently holds a 58 percent stake in Avendus. Several early high‑net‑worth investors, employees, and cofounder Ranu Vohra will also sell their holdings. Post-transaction, Mizuho is expected to own between 65 and 70 percent of the investment bank. Local private equity firm Gaja Capital, however, is likely to retain its 7 percent stake.
Avendus cofounders Gaurav Deepak (CEO) and Kaushal Aggarwal will continue as key shareholders, jointly holding around 12 percent. They will retain operational control, though Mizuho will gain significant strategic oversight through veto rights and four seats on the board.
This marks Mizuho’s largest investment in India to date, reinforcing the growing interest of Japanese financial institutions in the Indian financial ecosystem. With assets of $1.9 trillion, Mizuho is Japan’s third‑largest bank.
A Deal Years in the Making
Founded in 1999 by Vohra, Aggarwal, and Deepak, Avendus has evolved into one of India’s most influential domestic investment banks. KKR first invested in the firm in 2015, purchasing a controlling stake for roughly ₹950–1,000 crore. Upon exit, KKR is expected to make a blended 3.5x return in rupee terms over nine years.
Negotiations for the sale, however, were complex. Differences in exit rights and valuation expectations among minority shareholders delayed closure. Some shareholders advocated for an IPO, anticipating higher valuations in public markets. The uncertainty briefly encouraged competing bidders, including Carlyle, to re‑engage, though ultimately Mizuho remained the lead contender.
Strengthening the Indo‑Japanese Financial Corridor
The acquisition comes as Japanese financial institutions increasingly expand their footprint in India. SMBC recently acquired a stake in Yes Bank, Daiwa deepened investments in Ambit, and MUFG is in advanced discussions for a near $3‑billion purchase of a 20 percent stake in Shriram Finance.
Mizuho’s leadership has been vocal about India’s importance. CEO Masahiro Kihara highlighted the group’s focus on core verticals such as wealth management, corporate investment banking, and sustainable financing, viewing India as a strategic growth market and a longstanding economic partner to Japan.
Avendus: A Multi‑Line Financial Powerhouse
Avendus operates across investment banking, wealth management, alternative asset management, institutional equities, and wholesale financing through Avendus Finance. The acquisition of Spark Capital in 2022 expanded its institutional equities offering.
While investment banking remains the primary revenue contributor, diversification has strengthened the firm’s resilience. After a subdued FY24 marked by delayed transaction closures, Avendus saw recovery in FY25. Crisil reported a consolidated net profit of ₹170 crore for the nine months ending April 2025, surpassing FY24’s full‑year figure. FY26 profits are projected at ₹250–300 crore.
Industry experts believe the Mizuho partnership will provide the patient capital required to scale businesses beyond investment banking and deepen Avendus’ participation in the Indo‑Japanese corporate corridor.
Japan’s Expanding Financial Footprint in India
Mizuho has steadily expanded its India operations since purchasing RBS’s corporate banking assets in 2015. The group has infused over ₹4,100 crore into Indian branches and invested $145 million for a 15 percent stake in Kisetsu Saison Finance India. It also acquired Greenhill & Co. globally in 2023 to strengthen its international investment banking capabilities.
To accelerate its India strategy, Mizuho appointed Sanjay Nayar, former India head of KKR, as senior adviser.
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