Founded in 1999 by CEO Gaurav Deepak with colleagues Ranu Vohra and Kaushal Aggarwal, Avendus focuses on transactions valued at up to $2 billion in public and private markets. It also has asset management, credit and institutional brokerage operations. Avendus was the only Indian name among the top five M&A fee earners in 2023, according to Dealogic, ranking fourth behind Goldman Sachs, UBS and JPMorgan.

Any sale will test the clout of that potential price, which would be more than double the valuation KKR paid in 2015. While Indian investment banking fees have risen 35% to $650 million since the acquisition, according to Dealogic, and are expected to rise further as private equity activity increases, around 30 banks are vying for the spoils. And while individual parts of Avendus’ business, built up partly through acquisitions, look attractive, it is unclear whether there is a single buyer for the whole thing.

Global banks, for their part, are unsure whether fee increases will continue, opting to fly in executives from less busy locations like Hong Kong and Singapore to help boost business rather than increase headcount locally. A high valuation for Avendus would also mean a more lucrative future for its competitors.

(The author is a columnist for Reuters Breakingviews. The opinions expressed are her own. Resubmitted to correct typo in second graphic.)

CONTEXT NEWS

Japan’s Mizuho Bank and Dubai-based NBD Emirates are likely to make a bid for KKR’s 63 percent stake in Avendus Capital, Hindu Business Line newspaper reported in April, citing unnamed sources. A deal could value Avendus at as much as $450 million, the report added.

Avendus is an Indian financial services boutique founded in 1999 by CEO Gaurav Deepak and his colleagues Ranu Vohra and Kaushal Aggarwal. It operates in investment banking, asset management, credit and institutional securities.

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