New Delhi, June 8 -- Carlsberg A/S is preparing to file draft papers for an initial public offering of its India unit as early as this month, according to people familiar with the matter.

The potential listing could raise as much as $700 million, the people said, asking not to be identified because the information is private. Carlsberg is working with Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co. and Citigroup Inc. on the proposed share sale, the people said.

The IPO is expected to consist of a secondary share sale by the Danish brewer and could take place later this year, according to the people. Deliberations are ongoing and details including the size, structure and timing of the transaction could still change...