UltraTech Cement Board Approves ₹5,000 Crore Fundraise Through NCDs

UltraTech Cement has received board approval to raise up to ₹5,000 crore by issuing non-convertible debentures (NCDs) through the private placement route. The fundraising plan was cleared by the finance committee of the company's board, according to an exchange filing.

The proposed issue will comprise up to 5 lakh unsecured, listed, rated, redeemable, rupee-denominated and non-cumulative NCDs, each having a face value of ₹1 lakh. The company said the borrowing may be completed in one or more tranches.

Funds To Be Raised Through Private Placement

The Aditya Birla Group company plans to mobilise the capital through private placements rather than a public issue.

While the filing did not specify the exact purpose of the borrowing, the approval comes at a time when UltraTech continues to invest heavily in expanding its manufacturing footprint across the country.

Expansion Plans Continue

UltraTech had earlier disclosed that it was executing capacity expansion projects involving capital expenditure of around ₹17,000 crore over the next two to two-and-a-half years.

The company had already spent about ₹9,500 crore on capital expenditure during FY26. In April this year, it crossed 200.1 million tonnes per annum (MTPA) of domestic grey cement capacity, taking its overall global cement capacity to 205.5 MTPA.

During the company's recent earnings call, Chief Financial Officer Atul Daga said UltraTech expects its consolidated cement capacity to exceed 242 MTPA by the end of FY27, while domestic grey cement capacity is projected to reach 212.7 MTPA.

Debt Position Remains Comfortable

As of June 2026, UltraTech reported net debt of ₹15,875 crore.

According to Daga, the company's net debt-to-EBITDA ratio stood at 0.87 times at the end of the June quarter, and management remains confident of keeping the ratio below one time by the close of FY27.

Q1 FY27 Earnings

UltraTech Cement had reported a 16.8% year-on-year increase in consolidated net profit attributable to shareholders for the June quarter at ₹2,599.3 crore.

Revenue from operations also moved higher, rising 15.9% from a year ago to ₹24,648.20 crore, supported by higher sales volumes during the quarter.

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