TVS Credit eyes bid for Avendus Capital

TVS Credit has joined the race for KKR-backed investment bank Avendus Capital as part of its strategy to expand the group's financial services business, three people with knowledge of the development said.

- Ranjani Raghavan, Sneha Shah & Satish John

The financial services arm of the Chennai-based conglomerate has held several rounds of discussions in the last six months ahead of a likely bid, the people cited above said on the condition of anonymity. US private equity firm KKR & Co. has been looking to find a buyer for Avendus Capital for over a year.

TVS Group may acquire Avendus and keep it as a standalone entity within the group, or make an acquisition via TVS Credit, one of the two people cited above said on the condition of anonymity. "The group is well-funded and can pull this off through internal accruals if need be. It does not need to partner with anyone," the person said. If needed, TVS may raise debt at a later stage.