UltraTech Cement plans its biggest rupee debt funding, bankers say

UltraTech Cement is in talks with merchant bankers ​and arrangers to raise what would be its ‌biggest rupee bond funding, two bankers aware ​of the matter said on ⁠Monday, as it seeks to tap debt markets ahead of the central bank’s policy decision next ‌week.

The country’s largest cement producer by capacity plans to raise an aggregate ‌₹5,000 crore ($517.80 million) through bonds maturing ‌in ⁠two-and-a-half years, three-and-a-half years and five ⁠years, the sources said requesting anonymity as the talks are still private.

It is targeting ₹1,500 crore ​each in the ‌shorter two tranches at annual coupons of 7.22 per cent and 7.23 per cent, respectively, and ₹2,000 crore in the five-year tranche at 7.25 per cent.

The bankers ‌said UltraTech aimed to complete ​the sale before the Reserve Bank of India’s monetary policy decision on ⁠August 5.

The company did not respond to a Reuters email seeking comment outside regular business hours.

The ‌bonds are rated AAA by Crisil and may attract demand from mutual funds seeking high-quality credit, the bankers said.

In March 2025, UltraTech raised ₹1,000 crore each through three-year and five-year bonds at an ‌annual coupon of 7.34 per cent.

It has ₹3,500 crore ​of bonds outstanding, including ₹500 crore due within a month.

The cement maker ⁠reported a nearly 17 per cent rise in first-quarter profit ⁠earlier this month as it used its scale and market position to ‌absorb higher fuel costs linked to the Middle East conflict better than smaller rivals.

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