MUMBAISYDNEY, June 14 Reuters South Korea39;s Hyundai Motor is looking to sell a stake of up to 17.5 in the planned initial public offering of its India unit to raise up to 3 billion, three sources familiar with the matter said, in what could be India39;s biggest ever IPO.

Hyundai is expected to file papers for the listing with the stock market regulator as early as Friday, the sources said. Once approved by the regulator, Hyundai can list in Mumbai.

Hyundai Motor India Ltd, India39;s secondbiggest 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 socalled offer for sale route, the sources said.

Hyundai Motor India declined to comment.

The issue will be Hyundai39;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.

Hyundai is seeking approval to sell an up to 17.5 stake in the IPO to investors, but the final percentage could be lower, the sources said.

Sources previously estimated Hyundai39;s India unit to be valued at up to 30 billion.

The India IPO is aimed at accelerating Hyundai39;s expansion in a country where it has operated for over 25 years and where its affordable cars like Santro and sportsutility vehicle Creta are popular with Indian buyers.

The listing will reduce Hyundai Motor India39;s dependence on…