UltraTech Cement announced plans to raise up to Rs.5,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis, as the company looks to strengthen its financial position and support future growth initiatives.

According to a filing with the BSE, the company's Finance Committee has approved a proposal to issue up to 5,00,000 non-convertible, non-cumulative debentures, each with a face value of Rs.1,00,000, aggregating to a maximum fundraising amount of Rs.5,000 crore.

The company, however, has not yet disclosed details regarding the tenure, coupon rate, or the timeline for the proposed tranches. These specifics are expected to be announced in due course.

The fundraising proposal comes shortly after UltraTech Cement reported a strong financial performance for the June quarter, reflecting continued demand for cement and infrastructure-related products.

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The company posted a 17.23% increase in consolidated net profit, which rose to Rs.2,603.72 crore, compared with the corresponding quarter of the previous year. Its revenue from operations also registered healthy growth, climbing 15.85% year-on-year to Rs.24,648.20 crore.

UltraTech Cement continues to maintain its position as India's largest cement manufacturer. The company currently has a total grey cement production capacity of 205.5 million tonnes per annum (MTPA), along with 3.2 MTPA of white cement and wall putty capacity, reinforcing its leadership in the domestic cement industry.

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In addition to expanding its core business, UltraTech is also pursuing diversification opportunities. The company recently announced plans to enter the cables and wires business during the current financial year, marking a strategic move beyond cement and building materials.

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The proposed Rs.5,000 crore NCD issuance, coupled with its strong quarterly earnings and expansion strategy, underscores UltraTech Cement's focus on strengthening its balance sheet while supporting long-term growth and business diversification.