Indian billionaire Kumar Mangalam Birla’s flagship metals company is returning to the bond market after a decade-long hiatus, looking to raise funds to meet regulatory requirements.

Share Market Live

NSE

Hindalco Industries Ltd. is looking to sell a bond for as much as 7 billion rupees ($86 million), according to an exchange filing on Wednesday. If the transaction goes ahead, it would the firm’s first bond sale since 2012, Bloomberg-compiled data show.

Regulators in India require large companies to meet 25 percent of their annual funding requirements by issuing bonds, a policy designed to deepen the market.

Also read: Suzuki Motor Corporation president says EVs aren't 'only solution' to carbon neutrality in India

Hindalco’s board approved a proposal to raise as much as 10 billion rupees through bonds, loans, debentures and other securities in November. Managing Director Satish Pai said at the time that approval to raise funds through notes was to fulfill regulatory requirements.

Bloomberg first reported on the bond deal earlier this week. The company would seek bids Jan. 17 for 14-month bonds, according to people familiar with the matter, who aren’t authorized to speak publicly and asked not to be identified.

Shares of Hindalco were trading 2.81 percent higher at Rs 490.95.

Also read: Paytm continues upward momentum, gains for ninth straight day