Mizuho Set to Finalize Avendus Acquisition This Week

Mizuho Financial Group is on track to complete its acquisition of Avendus Capital for ₹5,900 crore (approximately $708 million) this week. The deal, which has been under negotiation for six months, is expected to be formally approved at a board meeting scheduled for Tuesday.

The acquisition will see KKR, which holds a 58% stake in the home-grown investment bank, exit its investment after nine years. KKR anticipates a 3.5x return in rupee terms. Other investors, including some high-net-worth individuals, employees, and Avendus co-founder and Executive Vice-Chairman Ranu Vohra, will also be selling their stakes.

Following the completion of the transaction, Mizuho is expected to own between 65% and 70% of Avendus. Gaja Capital, a local private equity firm with a 7% shareholding, is likely to remain invested. The other two co-founders, CEO Gaurav Deepak and Kaushal Aggarwal, will retain a combined 12% stake and maintain operational control, although Mizuho will possess veto rights. Mizuho will also gain four seats on the board, while Gaja, Deepak, and Aggarwal will each have one seat. Additional independent board members will be appointed over time.

This acquisition represents Mizuho's largest investment in India to date, highlighting the growing interest of Japanese financial institutions in the Indian market. Mizuho Financial Group, with assets totaling $1.9 trillion, is the third-largest bank in Japan.

Negotiations for the acquisition faced challenges, particularly concerning valuation and rights among minority shareholders. Some shareholders had hoped for an initial public offering, anticipating higher valuations in the public market. This disagreement briefly jeopardized the deal and attracted renewed interest from other potential bidders like Carlyle.

Avendus, established in 1999, operates in financial advisory, capital markets, and wholesale financing through Avendus Finance, as well as wealth and alternative asset management. The company has a national presence across 10 cities and also operates in the US and Singapore. While investment banking contributes the majority of its revenue, Avendus has diversified into sectors such as consumer, financial services, industrials, and healthcare.

Avendus reported a net profit of ₹170 crore for the nine months ending April 2025, compared to ₹118 crore in FY24 and ₹138 crore in FY23, according to a Crisil report from March. The firm is projected to achieve profits of ₹250-300 crore in FY26.

Mizuho's interest in Avendus reflects a broader trend of Japanese financial institutions increasing their presence in India. SMBC previously acquired a stake in Yes Bank, and Daiwa has deepened its relationship with Ambit. MUFG is also reportedly in negotiations to invest approximately $3 billion in Shriram Finance for a 20% stake.

Mizuho has been expanding its wholesale banking operations in India since 2015 and acquired Greenhill & Co in 2023 to bolster its ambitions in the US. Mizuho Bank has operated in India for over 25 years and has invested approximately $500 million into its Indian branches. The parent company also invested $145 million for a 15% stake in Kisetsu Saison Finance (India) last year.