Hyundai looks to sell up to 17.5% stake in India unit IPO to raise $3bn: Sources

South Korea's Hyundai Motor aims to file regulatory papers on Friday for the planned billion IPO of its Indian unit and is looking to sell a stake of up to 17.5 per cent in the offering, according to three sources with direct knowledge of the matter.

Hyundai Motor India Ltd, India's second-biggest carmaker behind Maruti Suzuki, will not issue new shares in the IPO which will involve its South Korean parent selling part of its stake in the wholly owned unit to retail and other investors via a so-called "offer for sale" route, the sources said.

Hyundai Motor India declined to comment.

The issue will be Hyundai's first such listing outside South Korea, with the sources saying the company aimed to raise between $2.5 billion and $3 billion from the stake sale in the offer.

The India IPO is aimed at accelerating Hyundai's expansion in a country where it has operated for over 25 years and where its affordable cars like Santro and sports-utility vehicle Creta are popular with Indian buyers.

The listing will reduce Hyundai Motor India's dependence on its Korean parent for funds, giving it the financial muscle to take on local rivals such as Tata Motors and chart its own growth plans in a market that accounts for 14 per cent of Hyundai's total global sales.

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