The Securities and Exchange Board of India (SEBI) has cleared the initial public offering (IPO) papers for Hyundai Motor India Ltd. The South Korean auto major plans to launch an IPO of up to 142,194,700 equity shares, each with a face value of ₹10.

A CNBC-TV18 report earlier had said that the potential valuation of Hyundai India’s IPO could be around ₹25,000 crore (nearly $3 billion) and the company is aiming to launch it in the first fortnight of October. If successful, the IPO will surpass the current record held by Life Insurance Corporation (LIC) of India, which raised around $2.45 billion.

The upcoming IPO will consist entirely of an offer for sale by Hyundai Motor Company, the promoter and selling shareholder. Once completed, the shares offered will represent 17.50% of the total equity share capital of Hyundai Motor India.

The SEBI nod marks a crucial step for Hyundai Motor India as it seeks to expand its footprint in the competitive Indian market and enhance shareholder value. More details on the pricing and timeline for the IPO are expected to be released in the coming weeks.

Hyundai Motor India has the second highest share in the country’s passenger vehicle market after leader Maruti Suzuki.