Tata Group’s unit Titan Co. is in early talks with banks as it mulls selling its first ever local-currency bond for 30 billion rupees ($362 million), according to people familiar with the matter.

India’s biggest jewellery maker plans to use the proceeds to help finance its acquisition of CaratLane Trading Pvt., said the people, who requested anonymity discussing a private matter. Other elements of the planned transaction are still under negotiation, they said, adding it may conclude by month’s end.

The bond would be Titan’s first in rupees, according to Bloomberg-compiled data.

Titan is in the process of raising its stake in CaratLane to capitalize on its big online retail presence. India’s M&A rules don’t typically allow the use of bank loans for such transactions.

Titan didn’t immediately reply to Bloomberg’s email and calls seeking comment.

By Divya Patil

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