UltraTech Cement, India’s largest cement producer by capacity, is planning to raise ₹5,000 crore through rupee-denominated bonds, which could become the company’s biggest bond fundraising exercise in the domestic debt market.
According to banking sources, the company is in discussions with merchant bankers and arrangers to tap the bond market ahead of the Reserve Bank of India’s upcoming policy decision. The proposed fundraising is expected to be used to strengthen the company’s financial position and support its business requirements.
The planned bond issue will be divided into three maturity periods — two-and-a-half years, three-and-a-half years, and five years. UltraTech Cement is looking to raise ₹1,500 crore each through the shorter two tranches, with annual coupon rates of 7.22 per cent and 7.23 per cent, respectively.
The remaining ₹2,000 crore is proposed to be raised through a five-year bond tranche carrying an annual coupon rate of 7.25 per cent.
The move comes as large corporates continue to explore debt markets for funding amid evolving interest rate conditions. UltraTech Cement, part of the Aditya Birla Group, has maintained its position as a leading player in India’s cement sector through capacity expansion and strategic investments.
The proposed bond issue, once completed, would mark a significant milestone for the company’s borrowing strategy and highlight continued investor confidence in high-quality corporate debt instruments.