New Delhi, Jun 14 (PTI) South Korean automaker Hyundai's Indian arm is likely to file preliminary papers with Sebi shortly to raise at least USD 3 billion (around Rs 25,000 crore) through an initial public offering, sources close to the development said on Friday.

The company's initial public offering (IPO), if it goes through, would be the largest in India, surpassing LIC's share sale of Rs 21,000 crore.

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This development marks a significant milestone for the Indian industry, as it is the first automaker to go for an initial share sale in over two decades, after Japanese automaker Maruti Suzuki's listing in 2003.

Earlier this week, electric two-wheeler company Ola Electric received capital markets regulator Sebi's clearance to raise funds through an IPO.

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Under the proposed IPO, Hyundai Motor India Ltd (HMIL), which is the second largest carmaker in India after Maruti Suzuki India, may dilute 15-20 per cent stake to raise funds in the range of USD 3.3-5.6 billion, sources said.

They said the company is likely to file its papers with the regulatory body Securities and Exchange Board of India (Sebi) soon.

When contacted over the issue, HMIL company declined to comment.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments.

HMIL reported a 7 per cent year-on-year increase in total sales at 63,551 units in May 2024 against 59,601 units in the corresponding month last year.

Domestic dispatch of vehicles to dealers saw a 1 per cent rise to 49,151 units last month from 48,601 units in the year-ago period.

Exports of the vehicles grew 31 per cent in May to 14,400 units compared to 11,000 units a year ago.

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