UltraTech Cement Plans Biggest Rupee Bond Fundraising Worth ₹50 Billion
India’s largest cement manufacturer, UltraTech Cement, is reportedly planning its biggest-ever rupee bond fundraising by raising ₹50 billion from debt markets. According to reports, the company is in discussions with merchant bankers and arrangers to issue bonds with maturities of two-and-a-half years, three-and-a-half years, and five years. The fundraising is expected to be completed before the Reserve Bank of India’s monetary policy announcement on August 5.
The proposed bond issue includes ₹15 billion each in the two shorter-tenure tranches, carrying annual coupon rates of 7.22% and 7.23%, while the five-year tranche is expected to raise ₹20 billion at a coupon of 7.25%. The bonds have received a AAA rating from Crisil, making them attractive to mutual funds and other investors looking for high-quality debt instruments. UltraTech has not officially commented on the fundraising plans.
The company currently has ₹35 billion in outstanding bonds, with ₹5 billion due for repayment within the next month. Earlier this month, UltraTech reported a nearly 17% increase in first-quarter profit, driven by its ability to absorb rising fuel costs more effectively than smaller competitors. The planned bond issue is expected to strengthen the company’s financial position while supporting its future growth and capital requirements.
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