UltraTech Cement to Raise ₹5,000 Crore Through Bonds to Reduce Borrowing Costs

• UltraTech to raise ₹5,000 crore through AAA-rated bonds.
• Funds will help reduce borrowing costs after expansion.
• Bond issue follows strong June quarter financial performance.

Mumbai: UltraTech Cement, the flagship cement company of the Aditya Birla Group, has announced plans to raise ₹5,000 crore through rupee-denominated bond issuances. The fundraising comes after the company completed a series of acquisitions and brownfield expansion projects. By securing funds through the bond market, UltraTech aims to lower its borrowing costs while maintaining financial flexibility for future growth.

The proposed fundraising will be divided into three bond maturities. UltraTech plans to raise ₹3,000 crore through bonds with 2.5-year and 3.5-year tenures, carrying annual coupon rates of 7.22% and 7.23%, respectively. The remaining ₹2,000 crore will be raised through 5-year bonds offering a 7.25% annual coupon.

The bond issuances have received the highest AAA credit rating from CRISIL, making them attractive to institutional investors such as mutual funds and insurance companies that typically prefer highly rated debt instruments. Earlier, in March 2025, the company had successfully raised ₹2,000 crore through 3-year and 5-year bonds at a coupon rate of 7.34%, demonstrating strong investor confidence.

While the company has not issued a detailed statement on the latest fundraising, recent financial updates indicate that UltraTech is focused on strengthening its capital structure after expanding its business footprint. The company currently has ₹3,500 crore worth of outstanding bonds, including ₹500 crore that is due for repayment within the coming month.

The latest bond issue is expected to reduce UltraTech Cement’s overall financing costs while improving liquidity management. The move also reflects the company’s strong credit profile and its ability to access low-cost funding from institutional investors. Lower borrowing expenses can support future investments and enhance profitability over the long term.

The fundraising plan follows a strong financial performance. Earlier this month, UltraTech reported a 17% year-on-year increase in net profit for the June quarter, supported by its large operational scale and ability to manage rising fuel costs linked to geopolitical tensions in West Asia more effectively than smaller competitors.

UltraTech Cement is expected to complete the bond issuances in the coming weeks, after which the proceeds will likely be used to refinance existing debt and optimize its capital structure. Investors will also closely monitor the company’s future expansion strategy and financial performance as it continues to strengthen its leadership in India’s cement industry.

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