BOMBAY (Reuters) – Hyundai Motor plans to list its Indian subsidiary on the stock market to raise at least three billion dollars (2.78 billion euros), two people familiar with the matter said, as the company south -Korean wants to strengthen itself in India, a fast-growing market, before the widely expected listing of Tesla.

Hyundai Motor India has started preliminary talks for an initial public offering and has held talks with several banks, two sources said on condition of anonymity because the discussions are not yet public.

The fundraising by Hyundai, India’s second-largest automaker with a 15% market share, would value its India operations at up to $30 billion, or more than half of its market capitalization of $42. billion dollars in Seoul.

According to the two sources, the company plans to “unlock value for its operations in India” through this IPO. “They want to take advantage of the IPO boom in India,” added one of the two sources.

In Seoul, Hyundai shares rose 5% on Monday, reaching their highest level in nearly three years.

A valuation of up to $30 billion would put Hyundai’s Indian unit behind rivals like Tata Motors at $41.43 billion and Maruti Suzuki India at $40.11 billion.

A spokesperson for Hyundai’s Indian subsidiary declined to comment.

(Reporting by Sriram Mani in Mumbai with contributions from Aditi Shah and Tanvi Mehta in New Delhi, Nandan Mandayam in Bangalore, Heekyong Yang in Seoul, Scott Murdoch in Sydney and Swati Bhat Shetye in Mumbai; Lina Golovnya, edited by Blandine Hénault )

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