RBI Grants Conditional Approval for Mizuho to Acquire Majority Stake in Avendus Capital — October 12, 2026

The Reserve Bank of India (RBI) has given conditional approval to Japan’s Mizuho Financial Group to acquire a controlling stake in Mumbai-headquartered investment bank Avendus Capital. The landmark deal, valued at upwards of $520 million, allows Mizuho Securities to acquire over 60% of Avendus, buying out US private equity firm KKR's majority stake held through its affiliate Redpoint Investments.

While the central bank’s clearance removes the primary hurdle for the foreign direct investment transaction, it comes with a strict regulatory rider. The RBI has directed the Japanese lender to submit a comprehensive plan within six months to consolidate and integrate its existing non-banking financial company (NBFC) holdings in India with Avendus's financing operations.

Key Conditions Imposed by the RBI

The central bank's stipulation targets corporate structural overlap and regulatory arbitrage within shadow banking operations. The consolidation directive directly impacts several existing lending entities under Mizuho's broader corporate umbrella:

• Mizuho Capsave Finance: In 2023, Mizuho Leasing acquired a 51% stake in equipment leasing company Rent Alpha, which owns NBFC unit Capsave Finance (now rebranded as Mizuho Capsave Finance).
• Credit Saison India: In 2024, Mizuho Bank picked up a 15% minority stake in Bengaluru-based NBFC Credit Saison India, the Indian arm of Japan's Credit Saison.
• Avendus Finance: Avendus operates its own wholesale and structured credit business through Avendus Finance, creating a multi-entity credit presence that the RBI seeks to streamline under a unified framework.

The six-month window gives the Japanese conglomerate time to present an integration framework that harmonises these domestic lending franchises in alignment with the RBI's scale-based regulatory structure.

Deal Mechanics and Shareholding Changes

First announced in December 2025, the transaction secured unconditional clearance from the Competition Commission of India (CCI) in April 2026 before heading to the RBI for banking and NBFC regulatory review.

Under the transaction terms, KKR will fully divest its holding of approximately 58% in Avendus, marking an exit nine years after its initial investment in 2015. Avendus co-founder and vice-chairman Ranu Vohra is also divesting his equity stake, while fellow co-founders Gaurav Deepak and Kaushal Aggarwal will continue as shareholders and maintain executive leadership.

Upon completion, Avendus will operate as a consolidated subsidiary of Mizuho Securities, expanding Mizuho's institutional reach across 12 Indian cities as well as international operations in the US and Singapore.

Significance for the Indian Financial Sector

The transaction underscores a broader strategic pivot by Japanese mega-banks toward Indian financial markets. Facing ultra-low interest rate dynamics domestically, Japanese financial heavyweights—including Mizuho, Mitsubishi UFJ Financial Group (MUFG), and Sumitomo Mitsui Banking Corporation (SMBC)—have aggressively scaled up their India allocations across commercial banking, private credit, wealth management, and capital market advisory.

For Avendus, aligning with a global balance sheet boasting nearly $2 trillion in assets equips its advisory, wealth management, and private markets businesses with institutional reach across APAC, Europe, and the Americas. For the Indian corporate ecosystem, the cross-border bridge is poised to significantly accelerate M&A deal flows, inbound Japanese equity investment, and cross-border fundraising channels.

Tags: Reserve Bank of India Mizuho Financial Group Avendus Capital KKR NBFCs Investment Banking