Mumbai: Tata Capital, the financial services arm of the Tata Group, has entered into a preliminary deal with Mizuho Securities Co Ltd of Japan to jointly offer financial services such as investment banking, private equity, broking and wealth management.

Tata Capital expects to draw on Mizuho Securities' expertise in private equity business in the future. The company plans to explore business opportunities with Mizuho Securities in the synergistic areas and other related opportunities of cooperation.

"Both the companies have reached a preliminary non-exclusive understanding to promote an alliance in private equity, investment banking, including cross-border mergers and acquisitions, securities business, including broking and distribution, structured finance and other business areas such as wealth management," Tata Capital said in a joint statement.

"This alliance with Tata Capital will provide significant potential for expansion of businesses in India," Shigeyoshi Nishiyama, deputy president at Mizuho Securities, said in the statement.

"We believe that there is a significant opportunity to create multi-faceted financial service offerings enabling customers to exercise greater flexibility while choosing their financial services partner," said Tata Capital managing director Praveen P Kadle.

The alliance will reinforce Indo-Japanese financial corridor while at the same time enabling Tata Capital to draw upon its partner's reach in private equity business in the future, the statement added.

The alliance, however, is subject to relevant regulatory approvals, it said.

Mizuho Securities is a unit of Mizuho Financial Group, Japan's second-largest bank.