(Nov 11): LG Electronics Inc has added Axis Capital Ltd to a roster of banks arranging a potential initial public offering (IPO) of its Indian unit, according to people familiar with the matter.

The South Korean company has selected the Indian bank as it moves forward with a share sale in Mumbai, the people said, asking not to be identified because the matter is private.

Representatives of LG Electronics and Axis Capital declined to comment.

LG had appointed banks including Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co and Morgan Stanley as arrangers for an IPO that may take place as early as next year, Bloomberg News reported in September.

LG may seek to raise US$1 billion to US$1.5 billion (RM6.6 billion) from the share sale, which could give LG Electronics India Pvt Ltd a valuation of about US$13 billion, people familiar with the matter have said.

India has turned into a hotspot for fundraising via equity capital markets as global investors seek to tap into the country’s economic growth. About US$49 billion has been raised in the country through IPOs and secondary offerings, about a third of the total in Asia this year, data compiled by Bloomberg showed. Hyundai Motor India Ltd’s US$3.3 billion share sale in October was the country’s largest on record.

Other companies undertaking Indian listings include Swiggy Ltd, HDB Financial Services Ltd, and Carraro SpA.

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