Japan’s Mizuho Securities will acquire a controlling stake in India’s Avendus for up to US$523 million (81 billion yen), according to a Reuters report.

The transaction comes as Japanese financial groups continue to expand in India’s growing financial services market.

KKR, which first invested in Avendus in 2016, will sell part of its stake as part of the deal.

Mizuho will buy between 61.6 percent and 78.3 percent of Avendus from the U.S. private equity firm, making the company a consolidated subsidiary of Mizuho Financial Group, Japan’s third-largest banking group.

The acquisition reflects rising demand from Mizuho’s corporate clients to expand into India, where economic growth remains stronger than in Japan’s ageing domestic market.

The deal is expected to strengthen Mizuho’s investment banking capabilities and improve coordination across its global advisory platform.

Mizuho has been building out its cross-border advisory business, including through its 2023 acquisition of U.S. investment bank Greenhill.

The Avendus transaction addresses a gap in its India investment banking coverage, Reuters reported.

Avendus operates across investment banking, wealth management, asset management and credit solutions.

The firm plans to expand hiring and increase its focus on sectors including industrials, healthcare, infrastructure and energy.

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