Tata Capital, the financial services arm of the Tata group, and Mizuho Securities of Japan, are giving shape to an alliance that seeks to launch a wealth management platform that would facilitate Indians investing overseas and foreign individuals investing in India.
Tata Capital is also interested in creating an avenue for letting Indian companies tap the retail investor base in Japan for fund raising.
“The Japanese retail investor base is strong. Indian companies have not tapped this potential so far. That’s one area we would like to work on for Indian issuers,” said Praveen P Kadle, managing director, Tata Capital.
Tata Capital and Mizuho had announced an alliance in February 2008. Mizhou has also opened its representative office in India after that.
Yutaka Endo, deputy President and board member, Mizuho Securities, said, “In two years, I am hopeful, we will make substantial progress in our joint effort.” He also said there was an opportunity for Indian companies to buy stakes in Japanese firms. Chinese companies are already buying interest in top Japanese companies.
Kadle said Mizuho was helping Tata Capital to legally structure a private equity fund in Japan, which should be finalised in the next six months.
Tata Capital has a loan portfolio of Rs 8,500 crore with corporate finance accounting for Rs 5,000 crore, consumer finance Rs 2,000 crore and the rest Rs 500 crore.