Homegrown financial services group Avendus Capital Private Limited is up for sale, with private equity firm KKR & Co. planning to exit the company at a valuation of $500 million - $600 million, two people aware of the matter said. The sale, if concluded, would be one of the largest exits by KKR from an Indian financial services company.

Besides KKR, a handful of other investors may also sell their stake in Avendus, the people said, requesting anonymity. Spokespeople for Avendus and KKR declined to comment. KKR is the largest shareholder in Avendus, with around 60% stake.

"Including KKR's stake, a total of around 75% stake of Avendus may be sold to new potential buyers, who could come in as new owners of Avendus," one of the two people said. Citigroup Global Markets and Nomura have been given the mandate to shortlist bidders for Avendus, the two people said. Spokespeople for Nomura and Citigroup declined to comment.

"KKR wants Avendus to go into stronger hands where the financial services firm can flourish and grow bigger. KKR and Avendus are both bullish on the India story, and there is a significant opportunity waiting for Avendus' investment banking, wealth and asset management business," the first person said. There are not too many buyers for a business as big as Avendus'.

The prominent domestic ones include ICICI Securities, HDFC Securities, Axis Securities and Investcorp. However, it could not be immediately ascertained if they were interested. "KKR is into creating returns for investors.

It has sharpened the business for Avendus and helped the leaders of the company shape their strategies to grow the business of investment banking and wealth management. Today, Avendus is in a different league and has positioned itself as a firm that HNIs (high networth individuals) and issuers of capital would look up to. So this is the right time for the business to be taken over by a strong parent that can provide Avendus with the scale.

Avendus has arrived at the second stage of growth, where it can compete globally. Therefore, this acts as an appropriate time for KKR and other investors to monetize their stakes at the best possible price. If one looks carefully at the recent stake sale deals by KKR, a similar growth story can be found," said the first person.