LG Electronics taps Axis Capital as underwriter for $1.5 billion Indian IPO

LG Electronics has appointed Axis Capital as an underwriter for its $1.5 billion IPO of its Indian unit, eyeing expansion in a fast-growing market.

The logo of LG Electronics is seen at its booth during The Semiconductor Exhibition 2024 at the COEX convention center in Seoul on Oct. 23, 2024. [AP/YONHAP]

LG Electronics tapped Axis Capital, an Indian bank, as one of the underwriters for the potential $1.5 billion initial public offering (IPO) of its Indian unit, Bloomberg reported Monday.

The Korean electronics company declined to comment on the report.

LG Electronics had already selected the Bank of America, Citigroup, JPMorgan Chase and Morgan Stanley as the organizers of its Mumbai listing that could take place as early as next year, the news outlet had previously reported.

Its Indian unit is reported to be valued at $13 billion and seeks to raise between $1 billion and $1.5 billion through the sale.

LG Electronics has been eyeing India as its next destination for advancement.

India, home to 140 million people, has been the fastest-growing major economy, posting 8.2 percent expansion in the fiscal year ending March 2024.

CEO William Cho had mentioned the company's Indian IPO plan as “one of many options to become a national brand [in India].”

LG Electronics established its Indian unit and manufacturing facilities in 1997 in Noida and added second facilities in Pune in 2004. This facility was recently injected with fresh 30 billion won ($21.3 million) fund for expansion in 2023.

The electronics giant, which locally manufactures air conditioners, refrigerators, washing machines and light-emitting diode TVs, among others, holds the No. 1 spot in India's organic light-emitting diode TV and refrigerator markets, according to Omdia data.

The company's growth is reflected in its financials with the Indian unit posting a record net profit of 198.2 billion won, a 27 percent year-over-year increase.

India's capital market raised $49 billion through IPOs and securities sales in 2023, representing a third of Asia’s total, per Bloomberg data.

In October, Hyundai Motor also made a significant debut on the Mumbai exchange, raising a record $3.3 billion from its share sale.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]