DLF Ltd jumped as much as 19 per cent on Wednesday, helping the benchmark index extend gains, after the firm said its board would consider a share buyback on July 10.

DLF had raised $2.25 billion in its IPO last July, which at the time was India's biggest-ever initial public offering.

But its shares had taken a beating recently as rising interest rates had triggered concerns of higher land costs and fewer buyers.

Turbulent market conditions had also forced DLF earlier in the year to shelve a planned $1.5 billion IPO of its property trust in Singapore. Sources said in May the company had revived and would enlarge the IPO to raise more than $2 billion.

Shares in DLF, India's most valuable real estate firm, were up 14.5 per cent at Rs 421.90 at 0948 GMT after having hit a high of 439.90 on the news, and helping extend gains on the benchmark index, which was up 5.7 per cent at 13,696.33.

Ramesh Sanka, chief financial officer of DLF, told CNBC-TV18 news channel the buyback was aimed at unlocking value for shareholders, and that the company had 'plenty of cash' to meet the requirement of the buyback.

He did not specify the size of the proposed buyback.