UltraTech Cement is in discussions with merchant bankers and arrangers to raise ₹50 billion through a multi-tranche rupee bond issuance, which would be the company's largest domestic bond fundraising if completed. The proposed issue is expected to be launched ahead of the Reserve Bank of India's monetary policy announcement scheduled for August 5.

According to sources familiar with the matter, the company plans to raise ₹15 billion each through two-and-a-half-year and three-and-a-half-year bonds, carrying indicative annual coupon rates of 7.22% and 7.23%, respectively. An additional ₹20 billion is proposed to be raised through five-year bonds offering an annual coupon of 7.25%.

The proposed bonds have received the highest AAA credit rating from Crisil, making them attractive to institutional investors, particularly mutual funds seeking high-quality fixed-income investments.

UltraTech Cement had previously accessed the debt market in March 2025, raising ₹20 billion through separate three-year and five-year bond issuances at an annual coupon rate of 7.34%. The company currently has ₹35 billion of outstanding bonds, including ₹5 billion maturing within the next month.

The planned fundraising follows the company's strong operational performance. Earlier this month, UltraTech reported a nearly 17% year-on-year increase in first-quarter profit, supported by its ability to absorb higher fuel costs arising from geopolitical tensions in the Middle East more effectively than smaller industry peers. The fresh bond issuance is expected to strengthen the company's funding profile while taking advantage of prevailing debt market conditions ahead of the central bank's policy review.