UltraTech Cement to raise funds up to Rs 3,000 crore via bonds

The flagship cement business of the Aditya Birla Group is UltraTech Cement Limited. UltraTech, a USD 8.4 billion powerhouse in the building solutions industry, is India’s biggest producer of ready-mix concrete (RMC) and grey cement, as well as one of the country’s biggest producers of white cement. Aside from China, it ranks third globally in terms of cement production. The only cement company in the world (apart from China) with more than 100 MTPA of cement production capacity in one nation is UltraTech. The company operates in the United Arab Emirates, Bahrain, Sri Lanka, and India.

Through bonds, UltraTech Cement is raising Rs. 3000 crore

On November 15, UltraTech Cement, the top cement manufacturer in India and a member of the Aditya Birla Group, declared its intention to issue bonds worth up to Rs 3,000 crore. The company’s plan to fund its expansion plans and fortify its balance sheet while simultaneously satisfying its more general capital needs is in line with this fundraising action.

The Fundraising Plan’s Specifics

The board of directors of UltraTech Cement has authorised the issuance of non-convertible debentures (NCDs) up to Rs 3,000 crore, the company said in its regulatory filing. Depending on market conditions and business needs, these NCDs will be issued in one or more tranches through a private placement. The issuance’s interest rate, maturity period, and other details will be revealed once they are finalised, which should happen soon.

Objectives of the Fundraising

Projects to Increase Capacity: In order to meet the rising demand for cement, UltraTech has been working to increase its production capabilities throughout India. This action will give these projects the financial support they need.

Debt Refinancing: UltraTech may also use the money to refinance current high-cost debt in an effort to lower financing costs, increasing overall cost-effectiveness.

Sustainability and Technological Improvements: Since the industry is coming under more and more scrutiny for its environmental impact, some of the funds may be used to enhance sustainability practices, especially in energy consumption and emission controls.

Price of UltraTech Cement Ltd.’s stock

UltraTech Cement Ltd.’s stock is currently trading at Rs. 10,826.65 per share, with a high of Rs. 10,873.50. The company is seeking to raise Rs. 3000 crore to expand further as a result of the fund-raising.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.