India's UltraTech Cement plans its biggest rupee debt funding, bankers say

Ultratech Cement

27/07/2026 04:15

By Dharamraj Dhutia
MUMBAI, July 27 (Reuters) - India's UltraTech Cement ULTC.NS 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 50 billion rupees ($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 15 billion rupees each in the shorter two tranches at annual coupons of 7.22% and 7.23%, respectively, and 20 billion rupees in the five-year tranche at 7.25%.
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 10 billion rupees each through three-year and five-year bonds at an annual coupon of 7.34%. 
It has 35 billion rupees of bonds outstanding, including 5 billion rupees due within a month.  
The cement maker reported a nearly 17% 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. 

($1 = 96.5625 Indian rupees)

 (Reporting by Dharamraj Dhutia; Editing by Subhranshu Sahu)
 ((Dharamraj.Dhutia@thomsonreuters.com;))