UltraTech Cement is lining up its biggest ever rupee bond sale, aiming to raise ₹5,000 crore through NCDs.

The cement maker is in talks with bankers to sell bonds across three maturities. These are two and a half years, three and a half years, and five years.

Bankers involved in the talks say the company is targeting ₹1,500 crore each in the two shorter tranches, at annual coupons of 7.22% and 7.23%. The remaining ₹2,000 crore is planned for the five year tranche, at a coupon of 7.25%.

UltraTech wants to close the sale before the Reserve Bank of India’s policy decision on August 5, which suggests it wants to lock in current rates before any potential shift.

This bond sale follows a board approval on July 23. UltraTech’s finance committee cleared the issuance of up to 5,00,000 non convertible debentures, worth ₹1 lakh each, adding up to the same ₹5,000 crore figure.

These bonds will be unsecured, listed, and sold through private placement in one or more tranches.

They also carry a top tier AAA rating from Crisil, which should help the company borrow at competitive rates and draw strong demand from mutual funds looking for high quality debt.

The timing of this fundraise fits into UltraTech’s broader growth plan. The company has earmarked around ₹17,000 crore in capital spending over the next two to two and a half years.

Much of that money is going toward taking its grey cement capacity past 242.5 million tonnes by FY28, up from around 205.5 million tonnes today. This isn’t UltraTech’s first time tapping the bond market either.

Back in March 2025, it raised ₹1,000 crore each through three year and five year bonds at a coupon of 7.34%. The company currently has ₹3,500 crore of bonds outstanding, including ₹500 crore due within the next month.

The fundraising plan also comes on the back of a strong June quarter. UltraTech’s net profit rose nearly 17% year on year to ₹2,599 crore, while revenue climbed close to 16% to ₹24,648 crore.

Both figures came in ahead of what analysts were expecting, and management has said that internal cash flows will fund most of the ongoing capacity expansion, with this bond issue acting more as a low cost buffer than a sign of any funding gap.

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