MUMBAI, INDIA-DLF Group, India's largest property developer, is weighing up an IPO to fund expansion plans, including a new move into the hotel industry.

"We will be appointing investment bankers this month. A final decision on the IPO will be taken within a quarter [of a year]," says Rajiv Singh, vice-chairman of DLF in a statement. He added that talks are under way with various investment bankers, including Goldman Sachs, to decide on the possible listing.

The company declined to say how much might be raised from a public issue but local media have suggested DLF could raise up to $2 billion through the offering. DLF currently has properties in around 19 cities, but plans to expand into 25 cities in the next few months. The company's current development program adds 10 million sf a year but Singh is optimistic they can develop up to 30 million sf a year.

The company's portfolio includes a mix of commercial, retail, leisure and residential. The Singh family currently owns 99.5% of the parent company. The Indian economy is one of the fastest growing in the world, driven largely by an expanding middle class of over 300 million people.

Singh also indicates that DLF is in talks with international hotel chains about developing hotels. "Hotels is a line we are personally keen to get into as they involve large real estate asset size and long-term value creation," he says. He adds that India is "under-served" in terms of the number of available hotel rooms and the current economic growth will further spur demand for hotels in the country.