Banks advising South Korean auto maker Hyundai on its India IPO are set to make as much as $40 million in fees, three sources said, a windfall in a market where banks typically struggle to make money given cost-conscious clients and fewer big deals.

That would be the second-highest fee pot ever for investment banks working on an initial public offering (IPO) in India and it comes amid a sharp surge in equity deals in the country, making it a bright spot in an otherwise dull Asia.

Hyundai Motor’s India unit this month filed for regulatory approval for a listing, which could be the nation’s biggest and will see the South Korean parent raise around $2.5-3 billion at a valuation for the unit of up to $30 billion.

Hyundai India will pay banks, including JPMorgan, Citigroup and HSBC, 1.3 per cent of the IPO size, the sources, who have direct knowledge of the deal discussions, said on condition of anonymity as the talks are confidential.

Citi and JPMorgan declined to comment, while Hyundai India and HSBC did not reply to requests seeking comment.

That translates to $40 million for a single deal at the top end of the deal size, making it the second best payday for banks after Indian fintech firm Paytm’s 2021 IPO yielded $44 million for its seven advisers, Dealogic data shows.

Banks in India get between 1 and 3 per cent of an IPO size as fees, with larger deals giving more bargaining power to the issuers. An IPO worth about $3 billion would see banks in New York earning 3-3.5 per cent in fees, while it could be 2-3 per cent in Hong Kong.