In the biggest deal of its type, Mumbai-listed real estate company Indiabulls will make an all-share offer for Aim-listed Dev Property Development.

It will be the first time that a deal of this size – Pounds 138 million – will be financed in the UK entirely by Indian shares.

Indiabulls is a property and financial services conglomerate with a Pounds 4 billion market capitalisation. It is the parent group of the largest real estate company in India, Ibrel, which is handling some of the biggest commercial projects in Mumbai.

The deal, which still has to be approved, will value Isle of Man- based Dev Property at a 32 per cent premium to its closing price of 75 .5 p.The economic boom in India, where GDP is growing at nearly nine per cent a year, has fuelled investment from international companies setting up offices in Mumbai, which has ignited the commercial property market.Last year, Dev Property was the fourth Indian developer to launch an Aim listing of a fund that allowed investors to take part in the Indian real estate market through a UK investment vehicle.