|
Getting your Trinity Audio player ready...
|
UltraTech Cement, the largest manufacturer of cement in India, is planning to raise around ₹5,000 crore through the issuance of non-convertible debentures (NCDs). If it goes through, this will be the largest rupee-denominated bond issuance by the company.
The proposal was approved by its finance committee on July 23, 2026, with bankers reporting that the company is in the process of engaging the services of lead debt syndicate members and order managers to issue the NCD just before the next meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).
Start investing with just ₹10K & grow your wealth with fixed return opportunities.
Invest Now
Why the Timing Matters: RBI Policy Meeting
The MPC meeting is scheduled for August 3-5, 2026, with the decision on interest rates to be announced on the final day. Corporates tend to place their large bond issuances prior to the policy review, mainly due to the likelihood of diminishing interest in the bond market and shifting yields after the RBI announces its position on interest rates. The repo rate has not been changed from 5.25% since the June 2026 review after 125 basis points worth of cuts, which commenced in February 2025. The RBI has held a neutral stance since then.
Deal Structure: What We Know So Far
- Instrument: Unsecured, listed, rated, redeemable, rupee-denominated, non-convertible, non-cumulative debentures
- Size: Up to ₹5,000 crore, via up to 500,000 debentures
- Face value: ₹100,000 per debenture
- Placement: Private placement, in one or more tranches
- Coupon rate & tenure: Not yet disclosed; expected to be announced tranche-wise
Ultratech’s Financial Background
The fundraising plan comes days after UltraTech posted a strong set of June-quarter (Q1 FY27) numbers:
| Metric | Q1 FY27 | YoY Change |
| Consolidated net profit | ₹2,603.72 crore | +17.23% |
| Revenue from operations | ₹24,648.20 crore | +15.85% |
| Net debt (as of June 2026) | ₹15,875 crore | — |
Source: UltraTech Cement Q1 FY27 results, company filings.
Latest Bond News:
- BMC Municipal Bonds 2026: Mumbai Civic Body Eyes India’s Largest-Ever Rs 9,500 Crore Bond Issue
- UltraTech Cement to Raise ₹5,000 Crore via NCDs Ahead of RBI Decision
- High-Yield Microfinance & SDI Bonds: What Investors Should Know
Why This Matters for the Cement Sector
UltraTech leads India’s cement industry with:
- 205.5 MTPA grey cement capacity
- 3.2 MTPA white cement/putty capacity
- Plans to enter the cables and wires business this fiscal, marking a diversification push beyond core cement operations
UltraTech plans to use the money collected from the NCD Issue for expanding the company’s capacity, refinancing, and general corporate purposes. This is in line with UltraTech’s history of using the domestic bond market to fund its growth. UltraTech got shareholder approval in 2015 for the issuance of NCDs worth up to ₹9,000 crore and has raised small amounts of NCDs (in the range of ₹300–1,000 crore) in subsequent years.
What to Watch Next
- Announcement of coupon rate and tenure for individual tranches
- Credit rating assigned to the NCD issue
- Investor response amid RBI’s August 3–5 policy stance
- Progress on the cables and wires foray
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
