UltraTech Cement plans 5,000cr rupee bond sale to lower costs
UltraTech Cement (yep, the Aditya Birla Group giant) is set to raise ₹5,000 crore by selling rupee bonds.
This fresh cash will help them lower borrowing costs after some big expansions and acquisitions.
The plan: ₹3,000 crore in bonds maturing in 2.5 and 3.5 years at 7.22% and 7.23% interest, respectively, plus another ₹2,000 crore with a five-year term at 7.25%.
Basically, they're making moves to manage money smarter.
UltraTech bonds get CRISIL AAA rating
These new bonds have a AAA rating from CRISIL, which is finance-speak for super safe, making them pretty appealing to big investors like mutual funds.
UltraTech already has ₹3,500 crore in outstanding bonds (with ₹500 crore coming due next month), and last year they raised another ₹2,000 crore at a slightly higher rate.
On top of that, the company's profits grew 17% year-over-year in the June quarter, thanks to their size and market muscle, even as smaller rivals struggled with rising fuel costs and global issues in West Asia.