MUMBAI-Property company DLF Universal could raise up to $3.5 billion in what could be India’s largest public offering ever. As a first step, DLF has filed a prospectus with the authorities to sell a 12.8% stake.

The offer document adds that Jones Lang LaSalle had valued its 228 million sf of holdings at 853 billion rupees ($18.9 billion). Analysts say valuation of DLF’s land holding is likely to determine the response to the IPO, expected to open in June, and its future stock performance. One added that DLF could raise up $3.5 billion; others have suggested £2 billion. The more optimistic figure would value the company at about $25 billion.

DLF officials said in April that they wanted access to funds to fuel the firm’s rapid expansion and that a public listing had more advantages than other means. It plans to develop special economic zones and hotels to tap into a new trend in India’s booming property market.

“We see the development of SEZs as a major growth area for our company,” the prospectus said. “We also plan to develop other tourism and leisure-related assets such as service apartments, clubs and golf courses.”

The government is promoting special economic zones to boost expansion of Asia’s third-largest economy, although some industry leaders say the finance ministry is likely to lose revenues as a result of tax incentives and that it risks land-grabbing by companies. DLF also has a joint venture with UK-based Laing O’Rourke Plc for project development, the prospectus said.

The issue is being managed by Kotak Mahindra Capital Co. Ltd. and DSP Merrill Lynch Ltd. It has six other bookrunners including Citigroup, Enam Financial Consultants, ICICI Securities, JM Morgan Stanley, UBS Securities and SBI Capital Markets.

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