The price range for the IPO has been set at 1,865 rupees (US$22.20) to 1,960 rupees per share, according to the company’s draft prospectus.

The listing will see the South Korean automaker sell a 17.5% stake in its India arm, putting its business value at US$19 billion if the shares are priced at the upper end.

Bidding for the IPO will start on Oct 15, with reports saying the shares are expected to list on Oct 22.

The listing will eclipse the 2022 listing of the state-run Life Insurance Corporation of India, where the government raised US$2.7 billion by selling a 3.5% stake.

“India is one of the most exciting auto markets in the world.

“We believe that now is the right time for us to take a step forward to further ‘Indian-ise’ our operations and become a home brand,” Unsoo Kim, managing director of Hyundai Motor India told reporters in India’s financial capital Mumbai.

He added that while the parent company will decide how the IPO’s proceeds are used, the South Korean automaker will invest “aggressively” in “new products” and research and development capabilities of the India unit.

Hyundai, which entered the Indian market over two decades ago, made a splash with its popular small cars and sedans.

The automaker has more recently seen success with larger models, enjoying strong demand for its sports-utility vehicle Creta from Indian customers.

It is one of the few foreign car companies to have left a mark on the world’s most populous country, with US rivals Ford and General Motors struggling to gain footing.

Hyundai will be looking to capitalise on India’s booming stock market, which has stoked an initial public offering frenzy over the last two years.

Start-ups and companies have scooped up billions of dollars from domestic and foreign investors.