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India's DLF Ltd is mulling its first sale of bonds in three years amid a revival in the country's real estate market, three merchant bankers said on Thursday.

"The company is engaging with investors and bankers for a bond issue but it has not firmed up any plans yet," a banker with a private lender said, requesting anonymity as he is not authorised to speak to media.

"It is difficult to pinpoint the exact timing (of the issue), as the talks are at a very basic stage," the banker said.

DLF may look to raise around 10 billion rupees ($120 million) through the bond issue but has yet to receive the board approval for its fundraising plan, the bankers said.

The real estate company may look to raise funds for two years to five years, they added.

DLF did not reply to a Reuters' email seeking comment.

ICRA has assigned a 'AA' rating to DLF's bonds worth 15 billion rupees.

The company had last raised five billion rupees through the sale of three-year bonds at 8.25% annual coupon in March 2021.

DLF's likely plan to return to the bond market comes at a time when India's real estate sector is seeing a revival.

Housing sales in India's top seven cities rose 36% year-on-year in the July-September quarter, according to real estate consultancy Anarock.

Shares of real estate firms have soared, with DLF up nearly 68% year-to-date compared with a near 11% gain in the blue chip Nifty 50 index.

"The economy is picking up and so is the demand for real estate, which could lead to a rise in fundraising from more such players in the coming months," one of the bankers said.

($1 = 83.3030 Indian rupees)